EUR was slightly softer again but found support at the 1.20...

3 févr. 2021

Again another great move from EURUSD since my last post. Further bearish momentum to be expected. The euro was slightly softer again but found support at the 1.20 handle. The situation in Europe is mixed, Italian political uncertainty remains, although former ECB President Draghi has accepted the task to form a government, he is facing push back from right wing parties, where the Brothers of Italy Party Chief has proposed to right-leaning allies to abstain over the Draghi government, while the League leader Salvini says the best solution is elections. Meanwhile, the vaccination process is still grabbing media headlines, but inflation data this morning was encouraging, seeing a rise of 0.9% in January Y/Y, above the expected 0.4%.