The stirring run higher in the euro keeps going with EUR/USD now up another 0.5% to 1.0890 levels. The high briefly clipped the 1.0900 mark as buyers are looking to make a play again on the week. The 200-week moving average at 1.0865 is a crucial one to watch, with a break there set to potentially invite a test of 1.1000 next.

That said, there are quite a number of key factors still yet to work themselves out on the week.

On the euro side of the equation, the discussions and negotiations on the debt brake reform will only take place on 13 March. And the Greens are already threatening to block the plan as seen here yesterday. That said, it’s all just words and a possible formality as Merz’s camp remains relatively relaxed that the Greens will eventually cave in after putting on a bit of a show.

As for the dollar side of the equation, there is the US CPI report tomorrow to work through. That’s the big one to watch for broader market sentiment as well this week.

So, while buyers are keeping things more promising for now, there’s still some key hurdles to overcome before vindicating a stronger push to 1.1000. That said, the technicals are certainly continuing to side with the upside momentum for now.