- EUR/USD regained positive traction for the third consecutive session on Tuesday.
- A subdued USD price action did little to influence the pair or hinder the move up.
- The USD bulls seemed rather unimpressed by hotter-than-expected US CPI figures.
The EUR/USD pair edged higher through the early North American session and refreshed one-month tops, around the 1.1380 region in the last hour, albeit quickly retreated few pips thereafter.
Following an early dip to the 1.1325 region, the pair managed to regain traction and turned positive for the third consecutive session on Tuesday. The uptick lacked any obvious fundamental catalyst and also seemed rather unaffected by weaker-than-expected German/Eurozone ZEW economic survey.
In fact, the German ZEW Economic Sentiment came in at 59.3 for the current month, a tad below consensus estimates pointing to a reading of 60. Meanwhile, the Current Situation Index also fell short of market expectations and edged higher to -80.9 from -83.1 recorded in May.
On the other hand, the US dollar struggled to capitalize on the previous day's late rebound and did little to provide any meaningful impetus to the EUR/USD pair. However, renewed concerns about worsening US-China relations and surging COVID-19 cases underpinned the greenback's relative safe-haven status.
Meanwhile, the USD bulls seemed rather unimpressed following the release of the latest US consumer inflation figures, which showed that the headline CPI rose by 0.6% in June as compared to 0.5% expected and -0.1% previous. The yearly rate matched expectations and came in at 0.6%.
It will now be interesting to see if bulls are able to maintain their dominant position or the pair once again meet with some fresh supply at higher levels as investors might be reluctant to place any aggressive bets ahead of the ECB decision on Thursday.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.