- The EUR/USD faces new sales on Tuesday due to the appearance of certain purchases around USD.
- US fiscal concerns and Fed feature clippages should limit USD profits and support the torque.
- The relatively Hawkish perspective of the ECB could support Eur and justify caution for the bulls.
The EUR/USD pair struggles to capitalize on the upward movement of the previous day and attracts new sellers near the 1,1435 region during the Asian session on Tuesday. The intra -dialing is driven by a good rebound in the demand of the US dollar (USD) and drags cash prices below the round 1,1400 figure in the last hour.
The US Non -Agricultural Payroll (NFP) report on Friday, stronger than expected, discouraged the hopes of imminent cuts of interest rates on the part of the Federal Reserve (FED) this year. This, together with the optimism about the resumption of commercial conversations between the US and China, leads operators to lighten their bassist bets around the USD, which turns out to be a key factor that exerts pressure on the EUR/USD torque. However, with the negotiations extending to a second day in London, the operators could refrain from opening aggressive directional bets.
In addition, operators are still valuing a greater probability that the US Central Bank reduces indebtedness costs in September. This, together with concerns about the financial health of the US government, could limit a greater appreciation of the USD and act as a tail wind for the Eur/USD torque. In contrast, the European Central Bank (ECB) hinted at the end of feat cuts during a meeting held last week. This could further benefit the shared currency and contribute to limit the losses of the currency pair.
Operators could also refrain from aggressive bets before the publication of US inflation figures this week. Therefore, it would be prudent to wait for a continuation sale before positioning itself for an extension of the recent setback from the proximity of the 1,1500 psychological brand, or the highest level since April 22 reached last week. In the absence of relevant macroeconomic publications, either from the Eurozone or the US, the EUR/USD pair remains at the mercy of the USD price dynamics.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.10% | 0.25% | 0.04% | -0.02% | 0.14% | 0.14% | |
| EUR | -0.22% | -0.10% | 0.02% | -0.14% | -0.21% | -0.07% | -0.05% | |
| GBP | -0.10% | 0.10% | 0.04% | -0.04% | -0.11% | 0.04% | 0.06% | |
| JPY | -0.25% | -0.02% | -0.04% | -0.17% | -0.29% | -0.17% | -0.18% | |
| CAD | -0.04% | 0.14% | 0.04% | 0.17% | -0.08% | 0.08% | 0.10% | |
| Aud | 0.02% | 0.21% | 0.11% | 0.29% | 0.08% | 0.17% | 0.17% | |
| NZD | -0.14% | 0.07% | -0.04% | 0.17% | -0.08% | -0.17% | 0.02% | |
| CHF | -0.14% | 0.05% | -0.06% | 0.18% | -0.10% | -0.17% | -0.02% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
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.
