The European currency did not rise after the announcement last week of a slight reduction in monthly volumes of asset purchases for the fourth quarter, commented analysts at MUFG. Investors are wary of the Federal Reserve, which could announce its timetable for withdrawing its accommodative monetary policy at its meeting on September 20 even as cases of coronavirus multiply.

As the euro moved to a two-week low against the greenback on Monday at $1.1780, the greenback started a week full of important economic data on a solid footing. The dollar closed its best week in the last 3 gaining around 0.6% against the euro, thanks in particular to the increase in US Treasury yields. On Tuesday, US consumer price data is expected to show a slight decline in core inflation to 4.2%. Further figures on the price increase will be published for the main countries. The euro against the pound failed to cross the 200-period moving average which acts as resistance. The level of 0.8615, the last market peak and crossing of the moving average, is therefore the obstacle to overcome to invalidate the bearish bias. The 13 and 34 period moving averages are about to cross, which would be a negative signal for the pair. The European currency could return to the support at 0.8450.