EUR/USD pares early losses, posts small gains above 1.1760
- EUR/USD staged a rebound after declining below 1.1730.
- US Dollar Index struggles to preserve its bullish momentum.
- Durable Goods Orders in US declined at a softer pace than expected in July.
After closing virtually unchanged on Tuesday, the EUR/USD pair edged lower during the first half of the day on Wednesday and touched a daily low of 1.1726. With the greenback struggling to preserve its strength during the American trading hours, however, the pair staged a rebound and was last seen posting small daily gains at 1.1762.
DXY fails to hold above 93.00
Earlier in the day, the IFO Survey showed that the Business Climate Index in August declined to 99.4 in August from 100.7 in July. On a positive note, the Current Assessment Index improved modestly to 101.4 from 100.4. These mixed readings failed to trigger a noticeable market reaction.
On the other hand, the monthly report published by the US Census Bureau showed Durable Goods Orders in the United States declined 0.1%, or $0.4 billion, to $257.2 billion in July, compared to analysts' estimate for a decrease of 0.3%.
Although this report was largely ignored by market participants, the sharp upsurge witnessed in US Treasury bond yields helped the USD outperform its rivals. With the benchmark 10-year US T-bond yield gaining more than 3% on the day, the US Dollar Index (DXY) advanced to a daily high of 93.12.
Nevertheless, the DXY lost its momentum as investors seem to be opting out to remain on the sidelines while waiting for FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium on Friday. Ahead of this key event, The European Central Bank (ECB) will release the Monetary Policy Meeting Accounts on Thursday. Weekly Initial Jobless Claims and the US Bureau of Economic Analysis' second estimate for the second-quarter GDP growth will be featured in the US economic docket.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
