Euro holds steady

The euro is gaining ground against the US dollar, trading at $1.3847, despite the tensions in Ukraine.

There are no major economic announcements from the eurozone today but Mario Draghi’s words still resonate with traders. Mr Draghi confirmed the European Central Bank was open to a stimulus program to tackle low inflation, but would only embark on it if the high euro continues to disrupt the eurozone recovery.

As Chris Beauchamp stated, the EUR/USD upward bias remains intact. The US will announce the services purchasing managers index and University of Michigan consumer sentiment at 2.45pm and 2.55pm respectively. If the reports are weaker than expected, we could head towards the $1.39 mark with the 100-day moving average providing support at $1.3724.

Spot FX EUR/USD chart

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