EUR/USD bulls floundering amongst the US dollar's correction

EUR/USD is trading at 1.1762 at the time of writing, struggling to convince on rallies having travelled lower from a high of 1.1808 to a late European low of 1.1722 on the day.

The single unit, however, is still some 0.2% higher at the time of writing, although there are signs of resistance in the move in the greenback.

The US dollar has found some legs on Tuesday, supported in an uptick in real yields and despite an uptick in Global equities following comments by Trump about possible tax cut on capital gains. 

Meanwhile, there is a focus on US fiscal stimulus talks and a decision on EU tariffs, but with lawmakers out of town and with Trump aides not expecting new stimulus talks anytime soon, it looks rather bleak for the US economy at this juncture.

We will await tomorrow's Consumer Price Index which analysts at TD Securities expect to it have risen strongly, 'and not just due to a bounce in gasoline'.

We forecast a 0.3% m/m rise in core prices. We expect relatively strong gains in airfares, other lodging, and used vehicle prices in particular. That said, we think the slowing in rents is more indicative of the trend in the year ahead. We expect the 12-month change in core prices to remain low at 1.2% in the July report.  

As for recent data from the eurozone, the German ZEW, the first survey data for August, showed mixed dynamics.

The Expectations Index improved notably more than expected to 71.5, but the Current Situation Index continued to deteriorate slightly to -81.3, against the expectation of a sharp improvement. Most industries showed improvement, except the Steel and Banking industries, which deteriorated slightly,

the analysts at TSS explained.

EUR/USD levels