Euro Retreats to three-week lows

The Euro lost ground against the US Dollar, causing it to retreat to three-week lows around the 1.0820 TERRITORY at the beginning of the trading week.

However, the dollar is enjoying buying interest around 103.70, flirting with the area of multi-session tops and surpassing the key 200-day SMA. The Euro starts the week well on the defensive against the dollar.

Investors anticipate the Federal Reserve and ECB to reduce their rates in Q2 2024, with the EMU Sentix Index improving to -16.8 in December. Germany’s trade surplus widened to €17.8B in October, and the Sentix Index improved to -16.8 in December.

The ECB’s Vice Chair of the Supervisory Board, Frank Elderson, is due to speak later. US Factory Orders contracted at a monthly 3.6% in October.

EUR/USD began the week with a retracement and approaches the 200-day Simple Moving Average (SMA), potentially facing the SMA as an initial support point.