EUR/USD: riding dollar weakness ahead of ECB and UK political risks

Currently, EUR/USD is trading at 1.1277, up 0.20% on the day, having posted a daily high at 1.1285 and low at 1.1240.

EUR/USD awaits the ECB this week and has been attracting a bid due to the weakness in the greenback yet again and ongoing geopolitical concerns. However, the ME and Qatar risk seem to have dissipated, for now, as markets view that Qatar would look to dissolve the tensions rather than escalate. The DXY is soft to 96.51 the low and yields in the 10-years, these are down -1.84% to 2.1416 at the time of writing. 

US Dollar Index headed toward lowest close in 8 months

EZ data:

"Eurozone retail PMI data reflected slightly slower growth in activity last month (52.0 vs. 52.7 – driven mainly by weaker German and Italian contributions). Germany’s construction PMI strengthened to 55.3 (from 54.6), however. Eurozone retail sales rose 0.1% in Apr, weaker than forecast, and Mar data was revised lower. Sentix investor sentiment data improved a point to 28.4," explained analyst at Scotiabank. 

EUR/USD short-term technicals

Analysts at Scotiabank explained that they are neutral/bullish: "Short-term patterns continue to reflect decent selling interest for EURUSD in the upper 1.12s but the broader technical undertone remains constructive and EUR gains are supported by a mostly bullish alignment of trend oscillators. This should mean relatively limited downside risk for EURUSD near-term. We see resistance at 1.1280/00 an support at 1.1110/20."