With both Germany IFO survey and Import Prices released on Monday, the EUR/USD recovered from its Asian session losses, bouncing off its 1.2490 low, and jumping to 1.2535 daily high.
At 10:00 GMT, Fed’s Evans will give a speech in Hong Kong and the market will be looking for hints of QE3. Headlines should keep investors on their toes as the Eurozone crisis continues and the ECB’s Asmussen speaks at 16:00 GMT.
“Only regain of last Friday’s spike high and daily 90 day MA at 1.2560, would provide relief and turn near-term focus towards 1.2600”, wrote Windsor Brokers analyst Slobodan Drvenica.