The work of the US government has been suspended. The gradual solution of political problems in Germany, as well as the lack of an agreement on the financing of the US government.

The gradual solution of political problems in Germany, as well as the lack of an agreement on the financing of the US government, put serious pressure on the U.S. dollar as it fell sharply against most of the world currencies at the beginning of the Asian session on Monday. However, the U.S. dollar managed to block the formed gap almost in all pairs.

On Sunday, it became known that Angela Merkel was able to solve a number of issues and pave the way for the creation of a ruling coalition. The Social Democrats voted to start negotiations with the bloc headed by Angela Merkel. The representative of the German Social Democrat Party, Martin Schultz, said that many agreements were reached during the talks which would help fulfill the promises given to voters during the election campaign.

The data released on Friday evening did not put any significant pressure on the US dollar.

According to the report from the University of Michigan, the leading index of consumer sentiment fell to 94.4 points in January this year against 95.9 points in December. Economists had expected the preliminary index in January to be 97.0 points.

It will be quite calm at the beginning of this week but there will be a number of important economic data to be published closer to the middle of the year. It is recommended to pay attention to the report on the consumer confidence and supply managers of the euro area, as well as on the ECB's statements, which will be made on Thursday.

The results of the surveys of the ZEW scientific center on the mood of the companies and their expectations in January will come out tomorrow.

As for the technical picture of the EUR/USD pair, it will greatly on whether the buyers of risky assets will be able to return to the resistance level of 1.2250 at the beginning of the week, then update the weekly highs in the area of 1.2300. Only after reaching this level will be possible to count on the continuation of the upward trend with an output of 1.2350 and 1.2390.

In case of maintaining pressure on the euro, the purchase of risk assets can be considered after correction to support areas of 1.2165 and 1.2120.