- EUR/USD fell to multi-week lows on Tuesday.
- The annual CPI in Germany fell to 8.6% in December.
- The main Wall Street indices will open in positive territory.
The pair EUR/USD fell sharply early in the European session and hit its lowest level in three weeks at 1.0520 before staging a modest bounce. At the time of writing, the pair is trading at 1.0560, where it was still losing almost 1% on a daily basis.
The renewed strength of the US dollar earlier in the day weighed on EUR/USD. However, the positive risk environment in the markets helped the pair limit its losses for the time being. At press time, US stock index futures were up between 0.4% and 0.8% on the day, pointing to a positive open in Wall Street’s major indices.
Meanwhile, data from Germany revealed on Tuesday that inflation, as measured by the Consumer Price Index (CPI), fell to 8.6% a year in December, from 10% in November. This reading was below market expectations (9%) and made it difficult to boost the euro’s recovery.
S&P Global’s December manufacturing PMI will be the only data on the US economic calendar and is expected to come in at 46.2, matching the preliminary estimate. US dollar valuation is likely to continue to drive EUR/USD action into the second half of the day, with US investors returning from the three-day weekend.
Technical levels to consider
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
