EUR/USD climbs to multi-day peaks near 1.1870 ahead of ECB-speak

• EUR/USD pushes higher and re-visits the 1.1870 area.
• The upbeat sentiment keeps ruling the price action in global assets.
• Investors shift their focus to the speech by ECB’s C.Lagarde.

The single currency extends the upside for another session on Monday and lifts EUR/USD to fresh peaks in the 1.1870 zone.

EUR/USD looks to risk appetite, ECB

EUR/USD posts gains for the third session in a row so far on Monday, always against the backdrop of the improved sentiment in the risk-associated space and the continuation of the selling bias in the buck.

In fact, European stock markets navigate a “sea of green” along with riskier currencies, all bolstered by rising optimism stemming from the recently announced trade deal between 14 Asia-Pacific countries, including China, Japan and South Korea. Collaborating with the sentiment still remains the optimism following news of the Pfizer’s vaccine, which supports further the prospects of a strong recovery in the neaer future.

Later in the session, all the attention will be on the speeches by ECB’s Luis De Guindos, Christine Lagarde and Yves Mersch.

Across the pond, the NY Empire State index and speeches by FOMC’s Clarida and Daly are expected later in the session.

What to look for around EUR

EUR/USD extends further north the recent breakout of the 1.18 mark at the beginning of the week. In the very near-term, however, EUR/USD is expected to remain under scrutiny on dollar dynamics mainly coming from the US post-elections scenario and the progress of the coronavirus pandemic. On the more domestic front, the euro appears propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB prompts some caution when comes to bullish attempts. As usual, the euro still looks supported by the solid position of the EMU’s current account.

EUR/USD levels to watch

At the moment, the pair is gaining 0.15% at 1.1852 and a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the other hand, the next support emerges at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4).