EUR/USD wakes up and jumps approaching 1.1100

• US dollar drops sharply across the board after US data, trade tensions. 
• EUR/USD has the best day in over a month, rebounds from lowest since October 10. 

The EUR/USD pair is consolidating gains, trading around 1.1075, up more than 50 pips from Friday’s close. Last week it bottomed at 1.0980, lowest level since mid-October and rebounded. The bounce of the pair gained speed today, boosted by a decline of the US dollar. 

Data and fear 

US President Trump announced tariffs to steel and aluminum from Argentina and Brazil, triggering concerns about the trade war. Equity prices and the US dollar lost momentum after Trump’s tweet. Later came the release of economic reports from the US manufacturing sector that showed numbers below expectations, weakening further the greenback. 

After the beginning of the American session, EUR/USD peaked at 1.1089, the highest level since November 21. The euro is having the best performance versus the greenback in over a month. 

Euro wakes up to test mid-November highs 

After moving during a week in a 50-pip range holding close to monthly lows, the EUR/USD broke to the upside. The rally from under 1.1000 so far was capped by mid-November highs, below 1.1100. The mentioned area is under pressure and a break higher should clear the way to more gains, targeting 1.1125/30. On the downside, 1.1060 is the immediate support followed by 1.1025/30 and then comes last week lows at 1.0980.