EUR/USD rises 0.30% on first day of eventful week

The eventful week ahead for the economy saw the EUR/USD pair get off to a dismal start. On Monday, it rose more than a quarter of a percent, or 0.30%, to settle at 1.0850. Prior to price inflation and growth data that is expected in the US and the Eurozone, while the technical factors are still suppressed.

President of the European Central Bank Christine Lagarde restated her position on inflation, saying that while the Eurozone’s inflation will continue to decline, further proof that price increase is heading back towards target is still needed.

In addition, Lagarde emphasized that there are still significant pay pressures, which means that in the upcoming quarters, salaries will play a bigger role in determining price developments. The US Personal Consumption Expenditure (PCE) Price Index for January and German Retail Sales and Consumer Price Index (CPI) inflation will kick off the euro area trading week.

Technical analysis indicates that although near-term higher lows are keeping the pair supported into the high end, EUR/USD is still locked below 1.0860 on Monday. The intraday charts still show a large supply zone between 1.0800 and 1.0820, with 1.0880 serving as the near-term technical ceiling.