EUR/USD offered below 1.2100 amid risk-off mood, Italian politics, virus updates in focus

By Anil Panchal

EUR/USD stays heavy near the lowest in six weeks. EUR/USD remains depressed around 1.2070, down 0.05% intraday, while heading into the European session open on Monday. Eurogroup meeting, Italian CPI will decorate the calendar amid US off.

The rising coronavirus (COVID-19) numbers push Rome towards stricter activity restrictions starting from Monday, per Health Minister Roberto Speranza. As per the latest official record, 16,000 new infections and 477 deaths could be found due to the deadly virus.

On the other hand, the US Centers for Disease Control and Prevention (CDC) reported that the total novel coronavirus cases of 23,653,919 as of yesterday versus 23,440,774 in the previous report on January 16. It should be noted that the vaccine producers are claiming to have the ability to tame the virus strains but can’t tame the market fears.

Other than the virus updates and politics, cautious mood ahead of US President-elect Joe Biden’s first day of duty and initially negative signals for taxpayers and Canadian oil companies weigh on the risks.

Against this backdrop, stock futures in the US and Europe remain offered while Asia-Pacific shares stay downbeat. Further, the US dollar index (DXY) rises to a fresh high since December 21 by the time of the press.

Looking forward, Italy’s December month Consumer Price Index (CPI), expected to remain unchanged at -0.1% YoY, will join the political play in Rome and the Eurogroup meeting to entertain EUR/USD traders. Although news from Itay may keep sellers hopeful, chatters between the ECB President Christine Lagarde and fellow bloc members can help Euro to lick its wounds. It’s worth mentioning that the off in America, due to Martin Luther King’s Birthday, will restrict the pair’s moves.