EUR/USD is trading below 1.21, consolidating Friday's losses as the market mood is mixed. Upbeat Chinese GDP and US stimulus are cheering markets while Italy's political crisis and the depressing coronavirus picture is weighing on sentiment.
EUR/USD retreats to 1.2285 from a 33-month high of 1.2327. Risk sentiment weakens, pushing stocks lower and the anti-risk dollar higher.
The US Dollar soared at the onset of the Covid-19 pandemic as panicked credit markets began to seize up, sending capital scrambling for the reserve currency’s ultimate liquidity.
Euro/dollar's consolidation may be coming to an end as worries about the virus, US stimulus, and Brexit are holding the EUR/USD pair back
According to FX Strategists at UOB Group noted the positive outlook for EUR/USD, which continues to target the 1.2200 level.