EUR/USD retreats from daily highs, holds above 1.1800
|- EUR/USD edges lower during the American trading hours.
- The risk-averse market environment is keeping EUR/USD's upside limited.
- US Dollar Index posts modest losses amid slumping Treasury bond yields.
The EUR/USD pair rose to a daily high of 1.1827 in the early American session on Tuesday but struggled to preserve its bullish momentum. As of writing, the pair was posting small daily gains at 1.1808.
Falling US T-bond yields limit USD's gains
Earlier in the day, the renewed USD weakness allowed EUR/USD to gain traction. The US Dollar Index (DXY), which lost 0.3% on Monday, fell to its lowest level in more than 10 days at 92.45 on Tuesday after the data published by the US Census Bureau showed Durable Goods orders rose by 0.08%, missing the market expectation for an increase of 2.1%.
On a positive note, the Conference Board's Consumer Confidence Index improved to 129.1 in July from 128.9 and came in better than analysts' estimate of 123.9.
Although the sharp decline witnessed in Wall Street's main indexes after the opening bell helped the DXY pull away from lows, the index stays in the negative territory a little above 92.50. The 4% drop seen in the benchmark 10-year US Treasury bond yield is making it difficult for the USD to outperform its rivals.
There won't be any other macroeconomic data releases featured in the US economic docket in the remainder of the day. On Wednesday, the FOMC will release its Monetary Policy Statement alongside the Interest Rate Decision.
Technical levels to watch for
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