GBP/EUR: Traders React To European Parliamentary Elections
  • EUR/USD pushed higher on  Monday owing to USD weakness.
  • The upbeat market mood, US stimulus optimism dragged on USD demand..
  • EUR/USD  held  gains in European session trading  around  1.2150s.

After easing back towards 1.21 on Friday, EUR/USD picked up again on Monday, supported by US dollar weakness. The rollout of covid vaccines boosted the market mood, undermining the safe-haven greenback.

Optimism for additional US fiscal stimulus further added to the soft tone  surrounding the buck dragged the USD Index to fresh two-and-half-year lows, around 90.50

A bipartisan bill for a $908 billion COVID-19 rescue  package, which is to be introduced in the US Congress later today, is expected to be split into two separate packages in an attempt to maximize the chances of it being approved.

The Euro shrugged off reports that the Netherlands will announce stricter lockdown measures to stem the spread of covid. The lockdown will remain in place until January 19

The US economic calendar is quiet instead, stimulus headlines and the broader market risk sentiment will drive the USD. investors may gold back from placing aggressive directional bets ahead of the FOMC policy decision.