EUR/USD eases from 3-day highs above 1.1330
- The offered bias in the greenback leads the recovery in spot.
- US-China trade talks due to resume later in the week.
- Risk-on sentiment continues to prevail in the global markets.
EUR/USD keeps the positive performance well and sound at the beginning of the week and is now navigating the upper end of the range in the 1.1330/35 band, or new session highs.
EUR/USD looks to trade, ECB
Optimism on an eventual deal in the US-China trade negotiations remains on the rise and keeps the sentiment in the risk-associated universe well propped up for the time being.
Further support for the riskier assets comeS from the markets’ view than some G10 central banks could postpone any intentions of start some sort of tightening in the next months, all against the backdrop of a generalized perception of a global slowdown.
Data wise in Euroland, the ZEW survey is coming up tomorrow, advanced February PMIs on Thursday as well as the publication of ECB minutes. Across the pond, the FOMC minutes are expected on Wednesday.
What to look for around EUR
US-China trade talks will be in centre stage this week and are expected to sustain the improved mood in the riskier assets, as markets are looking at the possibility that both parties could clinch a deal sooner than later. On another direction, EUR should closely follow comments from ECB members regarding the ongoing slowdown in the euro bloc and potential guidance from the ECB in the next months, at a time when speculations that the central bank could refrain from acting on rates this year remain on the rise.
EUR/USD levels to watch
At the moment, the pair is gaining 0.29% at 1.1323 facing the next hurdle at 1.1333 (high Feb.18) seconded by 1.1356 (23.6% Fibo of the September-November drop) and then 1.1403 (100-day SMA). On the other hand, a break below 1.1248 (2019 low Feb.14) would target 1.1215 (2018 low Nov.12) en route to 1.1118 (monthly low Jun.20 2017).