EUR/USD turns flat on the day near 1.0980 as USD rebounds on trade headlines
- US Dollar Index rebounds toward 99 in the American session.
- China is reportedly preparing to make a partial trade deal with the United States (US).
- Manufacturing sales in Germany continued to decline in August.
The EUR/USD pair started the week in a calm manner and moved sideways near 1.0980 before coming under pressure during the European trading hours. After touching a daily low of 1.0962, however, the pair rebounded and tested the 1.10 handle but failed to preserve its momentum. As of writing, the pair was virtually unchanged on the day at 1.0975.
The data published by Destatis on Monday revealed that sales of manufactured goods in Germany, as measured by factory orders, declined by 0.6% on a monthly basis in August and dragged the annual decrease down to -6.7% from -5% to revive concerns over an economic slowdown in the eurozone's biggest economy and weighed on the shared currency.
USD gains traction on trade headlines
Although the lack of significant macroeconomic data releases from the United States allowed the pair to retrace its fall during the second half of the day, the latest developments surrounding the US-China trade dispute helped the Greenback to start gathering strength against its major rivals.
A correspondent for Fox News reported that the Chinese Commerce Ministry was ready to make a deal with the US on parts of the negotiations both sides agreed upon. As of writing, the US Dollar Index was up 0.12% on the day at 98.96.
On Tuesday, industrial production data from Germany will be looked upon for fresh impetus. Later in the day, Chicago Fed President Evans and Federal Open Market Committee Chairman Powell will be delivering speeches.
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.
