The Euro rebounded off overnight and one-month lows at 1.0727 to 1.0825 at the close in New York.
On Friday, Germany’s Ifo Business Climate slumped to a historic low. The Euro shook off the data and much of last week’s bad news. A generally weaker US Dollar and increased risk appetite on Friday supported the shared currency. Fresh buying interest appeared near the 1.0700 level.
The ECB meets on Thursday amidst weak Eurozone economic data. This week also sees Eurozone GDP and growth across the region will be very weak. ECB President Lagarde said she believes the economy could shrink as much as 15%. Which leaves us to ponder if the ECB will boost stimulus at the conclusion of its meeting.
EUR/USD has immediate resistance today at 1.0840 and 1.0870. Immediate support lies at 1.0800 followed by 1.0760 and 1.0720. Remember that speculative Euro long bets (week ended April 14) were at their largest since 2018. Look for the Euro to grind lower in a likely 1.0760-1.0860 range today. Prefer to sell rallies.
