- EUR / USD regains the 1.2200 level on Monday.
- The German flash CPI surprised to the upside in May.
- Investor focus remains on US Payrolls.
The European currency remains in its tight daily range and now motivates the EUR/USD to return to positive territory in the 1.2200 region.
EUR / USD faces next target at 1.2270
The EUR / USD appears to be leaving behind Friday’s pullback, although low trading conditions and lack of volatility due to the US holiday so far leaves the pair within the daily range and around 1.2200.
In fact, the Memorial Day holiday in the US plus the bank holiday in the UK drain market activity and motivate global assets to maintain a consolidation mood at the start of the week.
Regarding the data in Euroland, Germany’s advanced inflation figures for the month of May indicated that consumer prices are expected to have increased 0.5% month-on-month and 2-5% over the previous year, both figures exceeded the estimates.
What to look for around EUR
EUR / USD made fresh 4-month highs near 1.2270 over the past week before sellers subsequently dragged it to the 1.2130 region, where decent containment has appeared so far. The better mood in the euro continues to be largely supported by improving sentiment in risk appetite and the dollar’s persistent bearish stance, all amid growing optimism about the euro area recovery, which it seems in turn supported by the firmer pace of the vaccine launch. Additionally, better-than-expected key fundamentals coupled with rising morale across the block also underpin the upbeat mood surrounding the pair.
So far, the pair is gaining 0.08% at 1.2200 and faces the next hurdle at 1.2266 (monthly high on May 25) followed by 1.2300 (round level) and finally 1.2349 (high on January 6, 2021). On the other hand, a break below 1.2132 (May 28 low) would target 1.2051 (May 13 weekly low) on its way to 1.1985 (May 5 monthly low).