EUR/USD Holds Firm Above 1.09 Ahead of ECB Speeches and US Data

EUR/USD maintains its position above 1.0900, as bullish sentiment prevails ahead of speeches from several European Central Bank (ECB) policymakers and the release of US data. The pair remains in a favorable position, as the US Dollar faces challenges amid an optimistic market mood. During Monday's relatively quiet trading session across financial markets, EUR/USD experienced a slight increase. As the last week of the month approaches, investors anticipate key inflation data releases and eagerly await insights from central bank officials.

On Monday, the US dollar weakened moderately, influenced by declining US yields and a recovery in commodity prices. However, concerns were raised about the state of the economy following Friday's PMI data, which sparked some pessimism. Furthermore, Monday's release of the German Ifo index indicated a decline, with the headline figure dropping from 91.5 to 88.5, falling short of the market's expectations of 90.7. Additionally, the Expectation Index plummeted from 88.3 to 83.6, while the Current Assessment fell from 94.8 to 93.7.

The European Central Bank's forum on central banking, taking place in Sintra, commenced with the participation of numerous central bank officials from around the world. ECB President Christine Lagarde, along with other ECB policymakers, is scheduled to deliver multiple speeches starting on Tuesday. This presents an opportunity for the ECB to convey a message to the market. The most probable scenario is for the ECB to adhere to its current "data-dependent" approach, potentially signaling another rate hike in July.

From a trading perspective, the idea is to consider a continuation of long positions, as the retracement has failed and the EUR appears to be regaining strength, aiming for the 1.1000 area and potentially further growth beyond that level.