The common currency managed to post some modest gains by Friday’s close. The euro gained mostly as the USD retreated. Month-end flows also partly contributed to the declines in the USD. Economic data on the day saw the US personal income and spending rising 0.3% and 0.5% respectively. And despite a weaker than expected inflation growth in Germany, the common currency stood its ground.
Can the EURUSD Post Further Gains?
The common currency has managed to rebound off the recent lows. However, the initial test comes in at the 1.1200 level where resistance is most likely to be formed. If the EURUSD manages to break out above this level, we could expect to see further gains in store. However, with the ECB meeting on Thursday, price action in the EURUSD could remain flat.
