EUR/USD manages to reverse the initial pessimism and advances to fresh peaks past the psychological 1.1000 the figure in an auspicious beginning of the week.

EUR/USD stronger on USD-selling

EUR/USD clinches the third consecutive daily gain on the back of the continuation of the downward bias in the dollar and the generalized upbeat sentiment in the global markets.

Furthermore, the underlying uptrend that prevails in spot since mid-March remains propped up by expectations of further tightening by the ECB at its upcoming meetings. On this, a 25 bps rate hike appears already largely priced in in May, while speculation of extra raises at the June and July gatherings also remains on the rise.

In the data universe, Germany’s Business Climate tracked by the IFO institute came in below consensus despite improving marginally to 93.6 for the month of April. In the US, the Chicago Fed National Activity Index disappointed expectations after remaining unchanged at -0.19 in March. Later in the session, the Dallas Fed Manufacturing Index will close the daily docket.