EUR/USD Gains Traction Amidst Greenback Correction and Declining US Treasury Yields
In the Asian session on Wednesday, the EUR/USD pair is in the process of recovering from its previous day’s losses, trading higher around 1.0860. The moderate strength in the EUR/USD can be attributed to a corrective movement in the US Dollar, coupled with a decrease in United States (US) Treasury yields.
Despite encountering pressure due to China’s economic challenges, the Euro could find support if signs of potential fiscal stimulus emerge. As the day progresses, traders of the EUR/USD are adopting a cautious approach, mindful of the impending release of preliminary PMI data from the Eurozone, Germany, and the US.
While the US Dollar Index (DXY), which measures the Greenback’s strength against six major currencies, recorded gains on Tuesday, the decrease in US Treasury yields and lackluster US housing data have placed some downward pressure on the US Dollar (USD). Presently, the DXY is maintaining a sideways trend around the 103.50 level.
In July, US Existing Home Sales (YoY) experienced a 2.2% decline, reaching a rate of 4.07M, falling short of the projected 4.15M. Conversely, the Richmond Fed Manufacturing Index witnessed improvement in August, moving from -9 to -7, aligning with market expectations. The upcoming Jackson Hole annual symposium commencing on Thursday, along with Fed Chair Powell’s scheduled speech on Friday, will be closely monitored by market participants.
These events are anticipated to shed light on the state of the US economy, potentially influencing trading decisions in the EUR/USD pair.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals