EUR/USD finally surpasses the key 1.2200 barriers on Tuesday.
The sell-off within the dollar forces DXY to interrupt below 90.00.
EMU flash Q1 GDP figures next of relevance within the euro docket.
The buying pressure around the single currency remains well and sound for yet one more session and lifts EUR/USD to fresh 3-month peaks beyond 1.2200 the figure on Tuesday.
EUR/USD stronger on USD-selling
EUR/USD advances for the fourth consecutive session on turnaround Tuesday, extending the recovery further north the key 1.2200 barriers for the primary time since later February.
The selling pressure around the greenback keeps gathering traction despite the steady performance folks yields. Closer to home, yields of the German 10-year Bund navigate the upper end of the range around -0.10% and lend further legs to the pair’s rally.
Also supporting the bounce-in spot appears the generalized better mood surrounding the risk-associated universe.
Later within the euro docket, another revision of the Q1 GDP figures within the broader Euroland will take center stage. Across the pond, Housing Starts and Building Permits are going to be within the limelight alongside the weekly report on US petroleum inventories by the API.
What to seem for around EUR
EUR/USD finally breaks above the key 1.2200 hurdles amidst the continuation of the recovery from last week’s lows within the mid-1.2000s, always on the rear of the strong bounce in yields of the German 10-year Bund and therefore the generalized upbeat tone within the risk complex. The sustained rebound within the pair also comes in response to the investors’ shift to the improved growth outlook within the Old Continent now that the vaccine campaign appears to possess gained some serious pace and solid results from key fundamentals at an equal rate with the surging morale within the bloc.
Key events within the euro area this week: Advanced EMU Q1 GDP (Tuesday) – Final EMU April CPI (Wednesday) – German/EMU flash May PMIs, advanced Consumer Confidence (Friday).
Eminent issues on the rear boiler: Asymmetric economic recovery within the region. Sustainability of the pick-up in inflation figures. Progress of the vaccine rollout. Probable political effervescence round the EU Recovery Fund. German elections.
EUR/USD levels to observe
So far, the spot is gaining 0.58% at 1.2218 and faces a subsequent hurdle at 1.2243 (monthly high Feb.25) followed by 1.2300 (ground level) and eventually 1.2349 (2021 high Jan.6). On the downside, an opportunity below 1.1985 (monthly low May 5) would target 1.1955 (200-day SMA) on the way to 1.1887 (61.8% Fibo of the November-January rally).
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