EUR/USD climbs beyond mid-1.2100s, refreshes session tops amid notable USD Distribution

The intraday USD selling picked up pace during the early North American semester and pushed the EUR/USD pair to fresh daily tops, across the 1.2160-65 area in the last hour.

EUR/USD climbs beyond mid-1.2100s, refreshes session tops amid notable USD Distribution

The group was able to find adequate support before the 1.2100 round-figure mark and staged a goodish bounce from around one-week lows touched earlier this Tuesday. A turnaround in the global risk opinion prompted some fresh selling round the safe-haven US buck, and that, in turn, was viewed as a crucial variable driving the EUR/USD set higher.

Despite doubts about the magnitude and timing of the US stimulus package, hopes for a solid economic recovery remained supportive of their underlying bullish tone from the financial markets. The threat sentiment got an additional boost after the International Monetary Fund revised its prediction for 2021 worldwide economic increase to 5.5percent from 5.2%.

Even the IMF, its most recent World Economic Outlook report, mentioned stronger-than-expected momentum in the second half 2020 behind the optimistic economic prognosis , albeit warned that the next wave of diseases and new variants of COVID-19 poses danger. The IMF further added that countries should continue to encourage economies until vaccine-powered normalization is underway.

Market participants now anticipate the launch of the Conference Board's US Consumer Confidence Index for a few impetus. Dealers might farther take cues in the US stimulation headlines, which might impact the market opinion and influence the USD. The important focus, though, will stay on the FOMC decision on Wednesday and Thursday's release of the Advance US Q4 GDP report.

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