So far today, Monday, the currency pair has barely moved, with only a -0.05% change from Friday’s close. Thus, the EUR is currently trading at around $1.0690 against the U.S. dollar.
As the President’s Day is celebrated in the United States today, which is a national holiday, the trading volume will also remain low. In the medium term, on the other hand, geopolitical tensions remain relevant, keeping financial markets in a risk-averse mood today, Monday. The focus is particularly on the tensions between the United States and China over the balloon launch. However, the fact that North Korea fired an intercontinental ballistic missile on Saturday, which landed in the Sea of Japan, has also given the market pause in terms of conflict potential. With regard to the Ukraine war, U.S. President Joe Biden arrived in Ukraine on a surprise visit to Kiev to announce additional arms deliveries.
At the moment, the EUR/USD seems to continue its decline, with sellers’ interest directed towards $1.0745. Thus, the US dollar started the week with an appreciation against most major currencies. However, the movements of the EUR/USD pair have been limited to a narrow range of 30 pips since the beginning of the day. The daily chart of the EUR/USD shows that the risk remains to the downside.