EUR/USD moves above 1.0800 amid USD pullback, ahead of EU Industrial data

• EUR/USD has climbed above to near 1.0820 as investors shrug off Fed-ECB divergence.
• The DXY has been dragged sharply after multiple failed attempts of establishment above 101.00.
• In the European session, Euro’s Industrial Production and Germany’s PPI will remain in focus.

The EUR/USD pair has witnessed a decent upside move after exploding from the previous consolidation zone, which placed in a narrow range of 1.0780-1.0798. The pair has recorded a fresh daily high at 1.0822 and is likely to extend its gains considering the price action and higher demand for risk-sensitive assets.

The shared currency has gained strength as investors are awaiting the release of the Euro’s Industrial Production and Germany’s Producer Price Index (PPI). A preliminary estimate for Germany’s monthly PPI is 2.6% against the prior print of 1.6%. While the monthly Euro Industrial Production is expected to land at 0.7% against the previous figure of 0%. This may enhance the likes of the shared currency going forward. Meanwhile, investors are focusing on the appearance of European Central Bank (ECB)’s Christine Lagarde, which is due on Thursday. This will provide guidance to the market participants above the likely monetary policy announcement by the ECB.

On the greenback front, the US dollar index (DXY) has attracted some significant offers which have dragged the asset below 100.70. Multiple failed attempts from the DXY while overstepping the barricade of 101.00 have brought a decent sell-off in the asset.

Apart from ECB’s Lagarde speech, the appearance of Federal Reserve (Fed)’s Jerome Powell will also hold significant importance. This will provide insights into the likely monetary policy action by the Fed in May.