EUR/USD clings to gains above 1.1600

The lack of direction in the greenback is now allowing EUR/USD to reclaim some lost ground and stabilize above 1.1600 the figure.

EUR/USD looks to trade, risk trends

The pair is posting decent gains so far in the European afternoon, rebounding to the 1.1620/30 region after bottoming out in the 1.1600 neighbourhood on Friday.

Lack of volatility and thin trade conditions due to the holiday in the US markets should keep global business subdued today, while the activity is expected to pick up later in the week in light of the publication of key data.

Earlier in the session, German final manufacturing PMI came in a tad lower than the preliminary reading at 55.9 for the months of August, while EMU’s PMI matched the advanced figures at 54.6.

Looking ahead, the pair is expected to remain under scrutiny ahead of Fedspeak and key releases in the US docket, including Friday’s Non-farm Payrolls, while Italy and the German-Italian yield spread appear to have returned to the investors’ radar.

EUR/USD levels to watch

At the moment, the pair is gaining 0.03% at 1.1606 and a break above 1.1734 (high Aug.28) would target 1.1745 (high Jul.31) en route to 1.1792 (high Jul.9). On the flip side, immediate contention emerges at 1.1617 (55-day SMA) followed by 1.1544 (21-day SMA) and then 1.1508 (low May 29).