- EUR/USD holds mild losses on Wednesday after the previous day gains.
- US Dollar Index rebounds slightly near 92.70, still below the last week’s high.
- The Euro remains under pressure on downbeat economic data.
The EUR/USD pair has been tracking minor losses in the Asian session. The pair hovers in a very narrow trade band with a negative bias.
At the time of writing, the EUR/USD is trading at 1.1805, down 0.02% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, rebounds near 93.00, which capped the gains for EUR/USD.
The single currency is weighed down by the downbeat economic data. Eurozone inflation jumped to a 10-year high in August with an expectation of further rise, which challenged the European Central Bank’s view on price growth. The Consumer prices rose 3%, surpassing the projections of all 37 economists in a Bloomberg survey.
Meanwhile, the Consumer Confidence Indicator came at -5.3 in August, lower from -4.4 in the previous month.
European Central Bank (ECB) policymaker Klass Knot signaled that the central bank might start reducing the pace of the Pandemic Emergency Purchase Program (PEPP) as reported by Reuters.
Investors turn their attention to German Retail Sale data, US ADP Employment, and ISM Manufacturing Purchasing Managers Index (PMI) data to take trade insight.
EUR/USD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.