- EUR/USD has been retreating from the highs as markets rethink the US-Sino deal.
- Economic data and political uncertainties are set to dominate trading.
- Monday's four-hour chart remains bullish for EUR/USD.
It is just another trade truce – that is the conclusion that many have reached after digesting the US-Sino accord. The world's largest economies shook hands on a deal that includes extended Chinese buying of US agrifoods and a commitment to write down the agreement in the next few weeks. Most importantly, the US has agreed to abandon its intention to slap new tariffs as early as Tuesday.
However, the agreement – celebrated at the Oval Office late on Friday – fails to tackle the structural issues that Washington demanded from Beijing. Moreover, the US tariffs planned for December 15 are still on the table.
Refraining from immediate tariffs sent stocks higher and weighed on the safe-haven dollar, but this trend is now reversing. EUR/USD …