EUR/USD pushes higher near 1.0970

The single currency is posting fresh multi-day highs vs. the buck on Monday, sending EUR/USD to the 1.0970/80 band, or multi-day peaks.

EUR/USD attention to risk trends

Spot is advancing for the second consecutive session so far today, gathering extra traction following a continuation of the selling bias surrounding the buck, which has started in the second half of last week.

The sell off in USD has picked up pace after US inflation figures tracked by the CPI and retail sales during the last month have disappointed market consensus during last month, impacting on the likeliness of further tightening by the Fed at its meeting next month.

EUR stays underpinned as well after political risks in the region have drastically diminished following the recent win of Emmanuel Macron in France. In the same way, regional results in Germany over the weekend seems to have paved the way for a re-election of Chancellor Merkel at the September general elections.

Additionally, EUR is deriving extra support from the positioning front, as the speculative community is now net long for the first time since May 2014, as shown by the latest CFTC report.

Nothing scheduled data wise in Euroland, whereas the NY Empire State index, TIC flows for the month of March and the NAHB index are all due across the pond.

EUR/USD levels to watch

At the moment, the pair is advancing 0.34% at 1.0969 and a break above 1.1024 (2017 high May 8) would expose 1.1073 (76.4% Fibo of the 1.1300-1.0339 drop) and finally 1.1300 (high Nov.9 2016). On the flip side, the next support aligns at 1.0916 (23.6% Fibo of the April-May rally) followed by 1.0873 (20-day sma) and finally 1.0838 (low May 11).