The US Dollar decline continues into the fifth consecutive session which has notably strengthened in the Euro.
Having crushed the critical support level at 98.30, the U.S. Dollar Index (US DXY) which measures the greenback against a basket of six major currencies heads lower into a week and month.
With the Euro weighted to the USD at 57.6%, the greenback has now carved out the 98.30 support which in terms has triggered the Eurodollar next leg to tackle the 1.1130-45 resistance after posting a fresh 2-month high of 1.1139.
On Friday, President Trump said he would take action to eliminate special treatment towards Hong Kong.
However, he did not indicate the U.S. would pull out of the phase one trade agreement reached with China earlier this year, easing trader concerns for the time being.
Last week, the European Commission waded in on a €750bn package consisting of grants, loans and guarantees, to be partially financed by EU taxes — an idea that has been rejected before by member states.
Looking ahead of a big week of local economic data, the main even hold to the U.S. job figures to be released on Friday will provide a key data point on the economic damage that coronavirus has wrought, with the worst unemployment levels since the Great Depression era expected.
The economy is expected to shed another 8.0 million jobs, after last the previous reading, which indicated the loss of some 20.5 million jobs.
From the technical assessment, due to the USD decline could see a stretch to this rally to 1.1190 to 1.1250 if 1.1130-45 is cleared, and to a New York close.