The Euro was leaned on by the overall stronger US Dollar, doubts regarding a recovery fund, and a net long market positioning on the currency. EURUSD closed at 1.1177, not far from its overnight low at 1.11682. Early Asia saw a brief recovery t0 1.1190 before settling at 1.1175 currently. Reuters reported that ECB President Christine Lagarde tell EU leaders at their summit on Friday that their economy was in a “dramatic fall” and called on the bloc to act to spearhead revival. The bloc’s so-called “frugal four” – comprised by Sweden, Denmark, Austria and the Netherlands – said that the recovery fund is too big, and the allocation of the money is not sufficiently linked to the Covid-19 pandemic.
Meantime Germany’s coronavirus reproduction rate jumped to 2.88 on Sunday from 1.79 a day earlier according to health authorities. The rate of 2.88, published by the Robert Kock Institute for public health means that out of 100 people who contract the virus, a further 288 people will get infected. Which increases the possibility of renewed restrictions in Europe’s largest economy. This week’s calendar sees Eurozone economic data kick off tomorrow with Euro area and Eurozone Flash Manufacturing and Services data.
EURUSD has immediate support at 1.1170 followed by 1.1140 and then 1.1100. Immediate resistance can be found at 1.1200 and 1.1240. Look to sell rallies with a likely range today of 1.1160-1.1230.