European Open: EUR/USD set to reclaim 1.0800?

Asian Indices:

• Australia's ASX 200 index rose by 5.8 points (0.08%) and currently trades at 7,352.60
• Japan's Nikkei 225 index has risen by 7.74 points (0.03%) and currently trades at 27,521.46
• Hong Kong's Hang Seng index has risen by 167.35 points (0.81%) and currently trades at 20,887.16
• China's A50 Index has risen by 128.93 points (0.96%) and currently trades at 13,530.69

UK and Europe:

• UK's FTSE 100 futures are currently up 32 points (0.4%), the cash market is currently estimated to open at 8,036.36
• Euro STOXX 50 futures are currently up 19 points (0.44%), the cash market is currently estimated to open at 4,293.92
• Germany's DAX futures are currently up 71 points (0.46%), the cash market is currently estimated to open at 15,553.00

US Futures:

• DJI futures are currently down -5 points (-0.01%)
• S&P 500 futures are currently down 0 points (0%)
• Nasdaq 100 futures are currently up 9.75 points (0.08%)

• Trading volumes are expected to be lower after lunch due to the US and Canada having public holidays
• Geopolitical tensions were on the rise as North Korea fired two more ballistic missiles off its east coast
• The PBOC kept their LPR (loan prime rate) unchanged at 3.65%
• The US dollar handed back most of its weekly gains on Friday ahead of the 3-day weekend, which saw a bullish hammer form on EUR/USD and gold daily charts
• There may be some mean reversion (against the US dollar) heading into Wednesday’s FOMC minutes
• A bullish engulfing week formed on copper futures, which suggests an important swing low has formed just below $4.00
• Oil prices and US stocks were lower on Friday as export prices rose 0.8% m/m – wel; above the -0.2% expected
• German producer prices are in focus at 07:00 GMT, although no top-tier economic data is scheduled for today

EUR/USD daily chart

On Friday the euro tried (but failed) to close below the ‘pandemic low’, instead closing the day with a bullish hammer candle. It also closed back above the 50-day EMA and has continued to hold above it during Asian trade. Given the fact the US is on a public holiday and data is light, we see the potential for range trading – which means bulls may be tempted to enter around the range lows and see if it can get back up to 1.800.

Economic events up next (Times in GMT)