Versus the United States dollar, the euro rose by 0.3% to 1.125. It was ahead of the German inflation figures, due at 1200 GMT, and the eurozone confidence data, at 0900 GMT.
ING strategists wrote that a quiet data calendar yesterday could see DXY drift down to a 96.80/97.00 area. Thus, they would probably say that much follow-through DXY selling beyond those levels looks unlikely.
On Monday, German Chancellor Angela Merkel and French President Emmanuel Macron will meet. They are then going to discuss the planned European Union coronavirus recovery fund.
Moreover, the Spanish Foreign Minister Arancha, Gonzalez Laya, said that the European Union is also forecasted to have a list of COVID-19-safe countries. This will be for travel purposes. It should be ready by Tuesday at the latest.
Goldman Sachs FX strategists wrote in a note to clients that they continue to expect a sustained recovery in the global economy. Moreover, they added that, over the coming months, it should support their view for euro appreciation.
The United States Dollar and Other News
Nevertheless, at least at this stage, they do not recommend EUR/USD longs for investors seeking risk-negative Dollar shorts. For that, the yen remains the best option, in their view.
Versus the Swiss franc, the euro edged away from Friday’s one-month low of 1.0628, up 0.2% at 1.0659.
Traders kept an eye on further United States reactions to the national security law to be imposed on Hong Kong.
The United States dollar reversed some of the overnight losses in early London trading. There is also a rising number of coronavirus cases, which is keeping the mood in check. There are fears of a second wave of the pandemic, which takes the shine off improving economic data, as well.
On Sunday, the global death toll from COVID-19 reached half a million. That is according to a Reuters tally. That prompted California to order some bars to close in the first significant rollback of the efforts to reopen the economy.
- Trading Instrument