EUR/USD climbs to fresh 2-week highs near 1.1280

• The pair moves higher and approaches 1.1300.
• The greenback loses the grip below the 97.00 handle.
• ECB meeting, FOMC minutes in centre stage on Wednesday.

The buying interest around the shared currency stays well and sound so far this week and is now helping EUR/USD to reclaim the 1.1280 region, or fresh 2-week highs.

EUR/USD looks to ECB, FOMC, risk trends

Spot is advancing for the second session in a row on Tuesday, fully recovering from the decline seen in the second half of last week and approaching the critical 1.1300 neighbourhood.

Improved risk-on sentiment on the back of fresh optimism over a potential trade deal between the US and China has lent extra oxygen to the riskier assets and helped the pair to put further distance from last week’s lows in the 1.1180 region.

Also collaborating with the firm note in the pair the US-Bund yield spread keeps navigating within a consolidative fashion between 251-252 pts.

In the data space, the NFIB index surprised to the upside, advancing to 101.8 during March. Later in the NA session, JOLTs Job Openings is due seconded by the IBD/TIPP index.

What to look for around EUR

EUR remains under pressure following poor fundamentals in Euroland and the strong up move in the greenback in past weeks. In fact, recent disappointing readings in the region somehow confirm that the slowdown in the bloc and the ‘patient-for-longer’ stance from the ECB could be among us for longer than expected. Against the backdrop of souring risk-appetite trend, the greenback should emerge stronger and is expected to keep weighing on spot for the time being. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among voters.

EUR/USD levels to watch

At the moment, the pair is gaining 0.15% at 1.1279 and a breakout of 1.1320 (55-day SMA) would target 1.1337 (200-week SMA) en route to 1.1350 (100-day SMA). On the downside, immediate support emerges at 1.1228 (10-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7).