The common currency is yet to confirm a reversal on a daily closing basis, as the recovery looks fragile at the moment
Global investors managed to shrug off virus-related worries at the start of the week, with risk sentiment improving across the globe on Monday. Following a rally witnessed on Wall Street ahead of the weekend, Asian equities jumped today while European stocks opened higher, with US stock futures extending the ascent as well.
As risk aversion has abated, the safe-haven demand for the greenback waned on Monday. EURUSD climbed back above the 1.1700 figure and was last seen flirting with the 1.1730 intermediate resistance. However, the common currency is yet to confirm a reversal on a daily closing basis, as the recovery looks fragile at the moment.
On the data front, the Eurozone manufacturing PMI arrived at 61.5 in August versus 62.0 expectations and 62.8 last. The index was at its weakest in six months. The services index fell to two-month lows of 59.7 in August versus 59.8 expected and 59.8 in July. Meanwhile, oil prices rebounded from fresh three-month lows seen below $65 on Friday. Brent crude climbed to the $67.30 region earlier in the day but failed to preserve gains and retreated back below the $67 figure as the futures lack upside impetus despite the bounce from the mentioned lows.
Elsewhere, bitcoin price jumped above the $50,000 threshold for the first time since mid-May, driven higher by industry news. In particular, the market cheered the news that PayPal will let British customers buy, hold and sell digital currencies, starting this week. Now, the BTCUSD pair needs to hold above the $50,000 level in order to extend the rally. The immediate resistance now arrives at $50,500. If the prices manage to overcome this barrier in the short term, the $52 figure will come back into market focus.