The Euro continued its climb, trading to an overnight peak at 1.099 with many looking for a topside break of its seven-week range. The shared currency has been boosted by the Franco-German agreement on a proposal between President Macron and Chancellor Merkel for a EUR 500 billion Recovery Fund to offer grants to the sectors hardest hit by the coronavirus. Many see this as a step to bring Europe closer to a fiscal union. The release of the FOMC meeting minutes provided more support for the Euro as US policymakers pledged to keep interest rates near zero for some time.
Today sees the release of Euro area Manufacturing and Services PMI, most of which are expected to see improvements. The risk is for a disappointment and could see a Euro pullback. EUR/USD closed at 1.0978 in New York (1.0935 yesterday). Overnight low for the shared currency was 1.09188. Immediate resistance can be found at 1.1000 followed by 1.1030. Immediate support lies at 1.0950 and 1.0920. Look for a likely trading range today of 1.09-1.10, prefer to sell rallies