- Euro (EUR) trades high on improving risk sentiment after AstraZeneca vaccine trials restart
- Industrial production expected +10% mom in July vs 9.1% in June
- US Dollar (USD) declines on safe haven outflows
- US FOMC in focus on Wednesday
The Euro US Dollar (EUR/USD) exchange rate is trading mildly higher on Monday after finishing the previous week flat. The pair settled on Friday at US$1.1845, approximately the same level that it started the previous week.
At 07:30 UTC, EUR/USD trades +0.1% at US$1.1860 at the upper end of the daily traded range.
The Euro is finding support from a broad upbeat mood in the market. Vaccine optimism, as Oxford University and AstraZeneca restart the covid trials is lifting risk appetite as London markets open. The upbeat mood is dragging on the safe haven US Dollar whilst boosting the Euro.
Vaccine trials were halted last week in a routine pause after one person in the trial fell ill. The Oxford / AstraZeneca covid vaccine is considered one of the most advanced in development and is one of the best bets at tackling the coronavirus pandemic. Given that a vaccine is the surest and quickest way for global economic growth to return to pre-pandemic levels, the markets are particularly sensitive to developments.
Attention will now move to Eurozone industrial production data for insight over the economic recovery after manufacturing PMI outperformed the service sector. Expectations are for +10% growth in July compared to the month earlier, up from 9.1% in June. A strong reading would confirm the continued economic recovery in the sector.
Last week, the European Central Bank (ECB) left monetary policy unchanged. The central bank also appeared unfazed by the recent appreciation of the Euro. The said it will continue to monitor the value of the Euro.
There is no high impacting US data due today. Investors will look ahead to the Federal Reserve monetary policy meeting on Wednesday. The Fed are not expected to move on policy with the US elections less than 2 months away.
