- The US dollar remains strong across the board, even as markets rebound.
- EUR / USD is heading towards the lowest daily close since early April.
The pair EUR/USD it recovered to 1.1780; however, it quickly fell back to the 1.1750 area. The euro bottomed hours ago at 1.1754, the new three-month lows, and remains under pressure, even as Wall Street recovers after Monday’s slide.
The Dow Jones is up 1.60% and the Nasdaq is up 1.30%. The improvement in risk sentiment eased the bullish tone of the US dollar but, so far, has not triggered any sharp correction.
The dollar is even higher against the Japanese yen on Tuesday, fueled by a rebound in US yields. The US 10-year yield rose from monthly lows of around 1.12% and was back above 1.20%. The bond sell-off is helping the dollar.
The market’s attention continues to be on the stock and bond market. For the EUR / USD, a key event will be Thursday with the meeting of the European Central Bank. The first since the new strategy, so some changes in the language are expected.
EUR / USD is trading at the lowest level since April. It is currently testing the 1.1760 / 70 support band. A consolidation below would open the doors to more losses.
Technical levels
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