The euro caught a light bounce as the Nord Stream 1 pipeline is set to see gas flows restart today, with early reports suggesting that capacity is to be around 40% - similar to before it was shut down for maintenance. EUR/USD moved up from 1.0210 to 1.0225 and is holding just below that. However, the 50.0 Fib retracement level at 1.0283 remains a key resistance point with the ECB also in focus later today:
The gas flow resumption in the pipeline is said to be gradual so we'll only be able to gauge the levels once there is more information during the course of the day. For now, that's at least one minor hurdle cleared for the euro but there is still the prospect of Italy heading towards early elections and of course, the ECB policy decision - which is arguably the key risk on the day.
