German inflation figures will be in the spotlight today as a precursor to broader Euro data tomorrow (see calendar below). Coming off a lively Friday last week, EUR/USD has been relatively subdued this Monday perhaps due to public holidays in both the U.S. and UK today.
Inflation has been a recurring global theme this year and the ECB faces similar bond buying questions to its U.S. counterparts as yields continue to track the prevailing uptrend. The U.S. will also release PMI data tomorrow which could result in significant price volatility should actual data deviate significantly from estimates.
Last week all 27 nations within the EU have approved the €750 billion recovery fund which comprehensively details frameworks for each country. Once stimulus starts to flood the market, it will be interesting to monitor the effect on the surging Euro.