• EUR/USD pares early gains a drops below 1.18 
  • Dollar-demand is driving the pair
  • ECB’s Christine Lagarde speaks later on Monday

A stronger start for the US dollar this week is dragging EUR/USD to a 2-day lows, sub-1.18 on Monday.

EUR/USD looks to ECB

Strong US dollar demand prompted bears to sell out of riskier assets keeping pressure on the EUR/USD which stated on a Friday. 

The greenback has pushed well beyond 93.00 or 2-day highs, which is a  level where risk sentiment is comfortable. Equally the pair remains in a multi day consolidative range.

There is no high impacting Eurozone data due for release today. Attention will turn to the ECB’s Lagarde who is due to speak later in the afternoon.

The US economic calendar is also quiet with the Chicago Fed index only due for release and a speech by FOMC’s L.Brainard.