EUR/USD advances to 1.2380, risk-off persists

• Spot rebounds from lows near 1.2350.
• USD losses upside momentum.
• Generalized risk-off poised to prevail.

After bottoming out in the mid-1.2300s during early trade, EUR/USD has regained some attention and is now heading into the 1.2380 region ahead of the opening bell in Euroland.

EUR/USD attention to risk trends

The demand for the European currency is picking up pace during the first half of the week amidst a persistent pessimism in the global markets.

In fact, the S&P500 has already shed more than 6% in February and volatility tracked by the VIX (‘panic index’) climbed to above 38 on Monday from 13.40 during the same period.

EUR is expected to remain bid in the current effervescent context in the global markets, sustained by the persistent current account surplus in the euro region.

In the data space, German factory orders crushed expectations in December, advancing 3.8% inter-month. Later in the session, BuBa’s J.Weidann is due to speak, while trade balance figures, the speech by St.Louis Fed J.Bullard (neutral, 2019 voter) and JOLTs job openings are all due in the NA docket.

EUR/USD levels to watch

At the moment, the pair is up 0.11% at 1.2382 facing the immediate support at 1.2351 (low Feb.6) followed by 1.2336 (low Jan.30) and finally 1.2285 (21-day sma). On the other hand, a breakout of 1.2522 (high Feb.2) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014).