EUR/USD advances towards 1.1900 on ECB's tapering expectations
- EUR/USD consolidates for the four trading sessions around 1.1860.
- The Euro gains on optimism after ECB hawkish outlook, German data eyed.
- US dollar index remained steady below the 13-week high near 92.30.
EUR/USD prints minor gains on Tuesday morning’s Asian session. The pair faces strong rejection near the daily highs around 1.1880.
At the time of writing, the EUR/USD pair is trading at 1.1865, up 0.05% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against six major rivals, remains unchanged above 92.2.
Investors stay invested in the US dollar after the June Survey of Consumer Expectations revealed that median inflation expectations over the next 12 months rose to 4.8%.
On the other hand, the shared currency managed to hold the ground against the greenback after the European Central Bank (ECB) planned to adopt a new strategy in its next meeting on July 22.
As per the Reuters poll, the ECB will start tapering its pandemic-related asset purchases after its September meeting and stop buying them by the end of March.
Meanwhile, the ECB announced last week that it would tolerate inflation higher than its 2% goal.
As for now, investors are waiting for the German Harmonised Index of Consumer prices and US Inflation Rate.
EUR/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
