- EUR / USD climbed to a daily high of 1.2076 on Monday.
- The US dollar index remains in negative territory around 91.00.
- The fall in US Treasury yields weighs on the US dollar at the beginning of the week.
EUR / USD started the new week calmly, spent the first half of the day moving sideways slightly above 1.2000. As the dollar came under pressure from sellers again in the early hours of US trading, the pair gained momentum and hit a daily high of 1.2076 before entering a consolidation phase. At time of writing, EUR / USD is up 0.33% for the day to 1.2055.
DXY retreats to 91.00 area
Data from the US showed that manufacturing activity continued to rise at a strong pace in April on Monday. However, the ISM Manufacturing PMI stood at 60.7, below market expectations of 65.
While the market’s initial reaction to the data was largely subdued, US Treasury yields declined and pushed the DXY down to a daily low of 90.86. Currently, the 10-year US Treasury yield is down 1.3% on the day and the DXY is down 0.32% to 91.00.
Meanwhile, the major Wall Street indexes opened in positive territory on Monday and the DXY was unable to rebound.
Later, market participants will closely follow the speech of FOMC Chairman Jerome Powell.
There will be no significant data releases on Tuesday in the European economic summary, and the market value for the dollar is likely to continue to drive EUR / USD.