The Euro is continuing to push higher in today’s trading session, spurred on by yesterday’s positive industrial production figures which shows the economy is moving in the right direction and the worst of the coronavirus pandemic may be behind it.
Eurozone industrial output growth hit the market at 0.8% in April which was double the figure of 0.4% that analysts had predicted, but the news was a little offset by a speech from policymakers who noted that it is early days to begin making moves to reduce, or put to an end the Pandemic Emergency Purchase Program (PEPP) which has until now been the lifeblood of the gradual economic recovery.
Also preventing the Euro from further gains is the big news due out on Wednesday, which is namely, the talk about the FOMC’s next policy move from the US which has completely divided analysts, with one camp believing the Fed will set the stage for higher rates, while the other believes that the dovish stance from the Central Bank will continue.
Later today, the Euro/USD should experience a little bit of volatility on the back of a monetary speech by the ECB’s Philip Lane and the release of US Retail Sales and Producer Price Index figures but again, no major movement is expected as the market awaits Wednesday’s Fed speech.
The EUR/USD pair is trading in a tight range this morning as the European session gets underway and has run into resistance level which was a former support level created on the 3rd of June and broken through last Friday.
The Euro needs to cross back over the $1.2125 level and once again use this as a support level as we move into Wednesday’s big news where we could see a run back to the $1.2200 mark which will keep the Euro’s bull run in tact that started near the end of March.