Sellers catch their breather after the five-day losing streak, allowing a brief phase of consolidation in EUR/USD above the 1.1000, having tested the three-week lows of 1.1017 reached last Friday.
Trade news and US/ Eurozone macro data to play key roles
The spot is seen wavering up and down within a 10-pips narrow range so far this Monday, as markets await fresh updates on the US-China trade front as well as the big economic releases from both sides of Atlantic in the week ahead for the next direction. The US docket sees the releases of the US CPI data and Fed Chair Powell’s testimony while the EUR calendar headlines the Eurozone growth figures.
Meanwhile, the US dollar index sits at three-week tops of 98.40, deriving support from the US-China trade uncertainty as well as the Hong Kong political chaos induced broader market risk-aversion. Therefore, the increased safe-haven bids for the greenback keep a check on the major’s upside attempts.
Further, the shared currency remains undermined by the Spanish general election outcome, reflecting a hung parliament; a legislative stalemate with neither the left nor right having a majority. The renewed Spanish political woes will continue to weigh, as the country is set to face a tough time forming a progressive government.
In the day ahead, the pair may keep its range trade intact amid holiday-thinned trading, with the US markets closed in observance of Veterans Day. However, the USD-dynamics will continue to have a major bearing on the spot amid fresh trade-related developments.