Virtually Flat

The mild downtick in the broader DXY has cushioned EUR/USD, after the rate printed as low as $1.1441 overnight, before recovering to trade 10 pips or so higher on the day at $1.1455 into London hours. A quick reminder that Friday trade was very narrow, with the rate recovering from intraday lows of $1.1433 as the DXY moved away from its YtD high.

• "Local" reaction to the deepening COVID restrictions evident in the likes of the Netherlands and Austria will be scrutinised early on today, with Germany also exhibiting a heightened state of alert on the matter.
• Our technical analyst notes that EUR/USD is consolidating. The outlook remains bearish following last week's break of the Nov 5 low. The break confirms a resumption of the downtrend and maintains the downward price sequence inside the bear channel drawn off the Jun 1 high. Furthermore, MA studies remain in a bear mode, reinforcing current conditions. The next objective is $1.1375, a Fibonacci projection. To the topside, the Nov 9 high ($1.1608) marks the key short-term resistance.
• There isn't anything in the way of notable FX option expiries to be aware of for the pair come today's 10AM NY cut.
• Comments from ECB's Lagarde and de Guidos will hit the wires later today, but there shouldn't be anything in the way of notable, fresh information given the recent deluge of ECB communique.