EUR/USD Reacts to ECB Commentary and US Numbers

EUR/USD saw a notable recovery, reaching its highest daily close since early February at 1.0850 on Monday, facing immediate resistance at 1.0860. The breakthrough above the 1.0840 level, followed by a retest and new bullish impulse, underscores its significance, potentially signaling further upward movement.

In economic news, ECB President Christine Lagarde highlighted strong wage pressure in the Euro area, affirming the need for a restrictive policy stance to prevent a wage-price spiral.

Later today, US January Durable Goods Orders data is anticipated, with expectations of a 4.8% decline following December's unchanged reading. While this data may not significantly impact the Fed's policy outlook, a positive reading could bolster demand for the US Dollar. Additionally, the Conference Board's Consumer Confidence Index for February and December's Housing Price Index will be released, further shaping market sentiment.

As the week progresses, market participants will closely monitor these economic indicators for insights into currency movements and potential shifts in central bank policies.