EUR/USD fell 0.1% to 1.2073, with the single currency likely to be under pressure this week with the ECB meeting, EU summit and Italy’s political crisis in focus.

The dollar edged higher today, clinging to small profits as traders turn to the safe haven as doubts about the global economic recovery rise while corona virus cases surge.

The US dollar benefited from safe-haven flows in response to poor US data with the last blow coming from the 1.4% plunge in December's Retail Sales statistics. They were not worse than estimated but also came on top of downward revisions for November.

A slow rollout of vaccines across the Europe and a confidence vote in Italian parliament have combined to take the steam out of the EUR/USD rally. The trade-weighted EUR is weaker but remarks such as the ECB ‘monitoring exchange rates carefully’ will add to the consolidative mood.