EUR/USD rebounds to above1.2100.
Risk tone with European equities recover, downing the USD.
US Consumer Confidence data & stimulus in focus.
EUR/USD rebounded to test 1.2150. ahead of key US economic data.
Risk sentiment performed a major turnaround, lifting equities after a weak start. The Euro Stoxx 50 trades 1% so far weighing on the safe-haven US dollar.
Prior to the European open EUR/USD extended Monday’s selloff falling to 1.2108, amid US dollar strength in risk-off sentiment.
The euro could remain under pressure amid deteriorating business sentiment and new covid lookdown extensions in key economies. Germany’s IFO Expectations index fell to 91.1 in January, missing the estimates of 93.2.
Italian political uncertainty keeps traders cautious before CB Consumer Confidence data due later in the NA session on Tuesday.