The single currency remained higher against the greenback on Monday as traders bought the euro after somewhat positive German IFO surveys, which came out above market estimates. The EURUSD pair was trading 0.20% higher around 1.1770, heading into the US session.

The IFO expectations index dipped from 101.2 to 101.0 in September, but analysts had expected only 100.2. Moreover, the current assessment gauge stayed at 106.4 (also above the market' estimate) and the business climate subindex slowed a notch to 103.7. The euro was bid afterward.

Later in the day, the ECB President Mario Draghi is due to testify about the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee in Brussels. This event could cause another volatility on the single currency.

Sentiment remains kind of neutral on Monday as China called off planned trade talks with the U.S., saying they won't negotiate new trade deals under the threat of new tariffs, which are now effective, starting this week. Chinese imports worth of 200 billion USD will be levied by a 10% tax till the end of the year and by a 25% tax since 2019.

Stocks dropped broadly after the news China is withdrawing from the negotiation table, but losses were minimal, with EU indices trading marginally lower and US futures were seen 0.20% weaker shortly before the opening bell.

US yields continued their march higher and both the 10-year and 30-year are trading near cycle highs, with the first around 3.08% and the later at 3.215%. However, the US dollar failed to find any support from rising yields, but stock markets might get spooked if this bullish momentum persists further.

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.