- Safe-Havens Demand
- Coronavirus Fears
- ECB Dovish Sentiments
EUR/USD was upbeat Monday, recouping some losses after three-weeks of losses. The pair was up by more than 0.2% benefiting from weakness in the U.S dollar. A firm dollar had taken the pair to three-week lows amid a surge in coronavirus that sent traders scampering for safety in safe-havens.
Euro Under Pressure
The pair appears to have found support above the 1.12 level after plunging below the critical support level and bouncing back. However, it remains under pressure as the greenback continues to attract bids on a surge in the market’s risk sentiments.
Time : 06-29-2020
Pivot : 1.234
Technical View : Long Above 1.1254
Target : 1.1267 next 2 targets are 1.1274 and 1.1288
Comments : Bullish
Last Price : 1.1275
A firm dollar in the wake of a spike of coronavirus infections worldwide has kept riskier assets under pressure. A spike in infections continues to rattle investors’ confidence in global economic recovery.
Dollar Safe Haven Demand
The U.S has so far emerged as a hot spot for the second wave, with more than 45,000 cases reported in one day. The total number of infections has already clocked highs of 2.5 million. California has already ordered all bars closed. Texas and Florida have also imposed new restrictions as a spike in infections keeps the State’s healthcare sector under pressure.
The dollar continues to strengthen across the board as traders bet on it as a safe-haven. Likewise, EUR/USD should remain under pressure as investors flock safe-havens. Euro weakness should continue to weigh on the pair price action throughout the week.
Dovish sentiments by policymakers, within the European Central Bank, continue to curtail Euro gains against the dollar. The latest is Francois Villeroy de Gadhu, who insists that monetary policy needs to remain until the 2% inflation target is met.
On the data front, Traders await the release German Consumer Price Index for June on Monday. Eurozone economic sentiment and Industrial sentiment report should also weigh on Euro conversely EUR/USD. In the U.S session, traders await the release of the U.S Housing data and Regional Fed.