EURUSD was slightly higher on Monday as the Euro seeks to shake off a recent slump. The pair was up 0.05% but the market awaits speeches by the heads of the U.S. and European Central banks.
The U.S. dollar was unable to get a boost on Friday despite strong retail sales, which came in a 1.9% versus expectations for a gain of 0.7%. The greenback is struggling due to the potential for further stimulus measures. Speaker of the House Nancy Pelosi has earmarked Tuesday as the deadline for further progress on a deal after weekend discussions with Treasury Secretary Steven Mnuchin. President Trump had agreed to a deal of around $1.8 trillion, so the market is expecting a package somewhere around the $2 trillion mark.
There is no data for the U.S. or Eurozone economies today, however, there is a raft of speakers on deck, which could see volatility in the EURUSD. The ECB’s Mersch kicks off, followed by the Federal Reserve’s Powell and ECB head Christine Lagarde. They will be followed by four speakers from the FED and that gives the potential for market moves.
The economic calendar is light for the week so the EURUSD is likely to be driven by stimulus talk. There is also the rise of coronavirus cases in Europe, with Italy and Malta the latest countries to introduce further restrictions. Traders could react negatively to the euro if the problem persists and worsens the economic outlook.
EURUSD Technical Outlook
EURUSD has been weaker beneath the 50-day moving average and continues to look for a bounce at the 1.1700 level. If the market can find support there then a test of the 1.1750 and 1.1800 would be next. The lows at 1.1610 will be a target for further losses. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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EURUSD Daily Chart
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