Sudden buying interest is now lifting the shared currency to session highs in the vicinity of 1.2870 on Monday, ahead of second-tier data from Italian industrial sector due later.
“The prolonged period of recession in the euro-zone and building disinflationary pressures will keep pressure upon the ECB to ease monetary policy further weighing modestly upon the euro”, commented Lee Hardman, Currency Analyst at BTMU.
At the moment, the pair is gaining 0.15% at 1.2862 facing the next hurdle at 1.2890 (high May 17) ahead of 1.2930 (high May 16) and finally 1.2943 (high May 15).
On the flip side, a breakdown of 1.2796 (low May 17) would aim for 1.2740 (2013 low Apr.4) en route to the psychological mark at 1.2700. – FXstreet.com (Barcelona)