For the past four sessions, the EUR/USD has struggled to find direction and is waiting for confirmation to trade directionally.
Since the beginning of July, the US Dollar Index (DXY) has been stuck around 92.20.
Despite positive economic statistics, the Euro’s gains were modest, and new corona instances sparked a new round of fear.
The EUR/USD pair is trading sideways in the Asian trading session on Tuesday morning. Ahead of the main economic data, the pair trades in a fairly narrow trading band with no substantial traction.
The EUR/USD currency pair is currently trading at 1.1864, up 0.02 percent on the day.
With subdued gains, the US Dollar Index (DXY), which gauges the greenback’s performance versus six major rivals, trades below the 12-week high near 92.20. The 10-year benchmark yields in the United States have risen slightly to 1.44 percent.
In a calm trading session on Monday, investors steered away from placing significant wagers on the US dollar, as exchanges were closed for the Independence Day holiday. All eyes were on the FOMC minutes, which were set to be released on Wednesday.
The euro’s gains, on the other hand, were modest as ECB policymakers remained divided over their new inflation strategy, but Bloomberg reported that they are hopeful of reaching an agreement at a special meeting in Frankfurt next week.
Meanwhile, in June, the IHS Markit Eurozone Composite Purchase Manager Index (PMI) was 59.5, slightly higher than market expectations of 59.2. In June, the Service PMI rose to 58.3, exceeding market estimates of 58.0.
For the time being, investors are waiting for data on Eurozone retail sales and the US ISM Service Purchase Manager Index (PMI) to measure market sentiment./n
