FXStreet (Edinburgh) – The single currency is clinging to daily gains vs. the greenback at the beginning of the week, with EUR/USD navigating the LOW-1.0800s ahead of key German IFO.
“While we expect interest rate differentials to guide EUR/USD lower, given the risk that the EUR may be reluctant to give up ground, the EUR/USD 1.04 level could provide tough support”, said Jane Foley, Senior Currency Strategist at Rabobank.
Furthermore, the research team at UOB Group suggested “As expected, EUR held below the 1.0920 resistance (high of 1.0876) and the down-move did not move below the 1.0777 support. That said, downward momentum is improving quickly and the current weakness is expected to extend lower to 1.0740 from here. Only a move back above 1.0840 would indicate that the immediate downward pressure has eased”.
(Market News Provided by FXstreet)