GBP/EUR: Pound Snaps 3 Day Winning Streak vs. Euro
  • EUR/USD pares earlier losses advancing to 1.1650.
  • US Dollar edges southwards after a period of solid gains.
  • ECB’s Christine Lagarde speaks later on both Monday and Wednesday.

EUR/USD has attempted to break down through 1.1615/10 over the past few sessions although now is pushing higher trading close to 1.1650.

EUR/USD eyes ECB, data

EUR/USD kicked off the week on the front foot advancing towards 1.1650on renewed dollar weakness and rising risk appetite.

US politics will be under the spotlight with the Trump-Biden presidential debate on Tuesday. Separately, any clue from US policymakers regarding an additional stimulus package (apparently worth $2.4 trillion) will be eyed closely.

In the European session, European Central Bank (ECB) President Christine Lagarde will speak later on Monday followed by Isabel Schnabel. Later in the week Eurozone inflation, Consumer Confidence, German labour market report and PMIs are all due in addition to further ECB-speak.

Euro – what to watch?

After reversing off 1.1610, a 2 month low, EUR/USD is attempting to extend gains

Even so, ER/USD outlook is still bullish with downwards moves considered corrections. The longer term upbeat mood towards the Euro remains underpinned by encouraging macro results which support the idea of economic recovery from the Spring low, by the relatively calm  US-China trade front and by the  steady stance from the ECB. The EMU’s solid current account position, plus favourable speculative positioning also supports the Euro.