EUR/USD is off the weekly highs, looking to check the 1.1800 mark, because the US dollar bulls return amid a return of risk-off mood before the Eurozone data.
The main currency pair retreats, as investors scout for safety within the US dollar amid souring risk sentiment. The futures tied to the US indices flipped to losses, suggesting risk-aversion. Investors rethink the prospects of the post-pandemic economic recovery and odds folks President Joe Biden’s $2.25 trillion infrastructure plan.
Across the Atlantic, surging covid cases across Europe and strict restrictions in France, Germany and Italy still fuel the economic process concerns for the euro traders. Therefore, the corrective upside within the major remains limited thanks to the macroeconomic divergence between the US and European Union (EU).
The US reported stronger jobs and services sector activity for March, boosting the Wall Street indices to record highs while downing the US dollar. The slump within the greenback helped EUR/USD to increase the rebound from four-month lows of 1.1703 reached on March 31.
Attention now turns towards the Eurozone Sentix Investor Confidence Index and percentage for fresh trading impetus. within the meantime, the US dollar price action and risk trends will still remain the most drivers.