EUR/USD has been unable to make headway, but there has been support below the 1.1700 level.

The German IFO index was slightly higher than expected with an unchanged reading of 102.2 for May, although there were still some concerns surrounding weakness in export markets.

The Italian bond market continued to lose ground on Friday with benchmark 10-year yields close to 3-year highs at 2.46% while credit default swaps also widened further.

Italian concerns undermined fundamental support, although there was also an impact in curbing potential carry trades funded through the Euro.

EUR/USD dipped back below 1.1700 early in the European session but sellers were again unable to hold the rate below this level with a recovery to 1.1720.

Position adjustment was a significant feature with US and UK markets closed for holidays on Monday.