The EURUSD pair retreated to an intraday low of 1.1780, down 0.09% on a day, heading into Tuesday’s European session. The US dollar’s sustained strength keeps weighing on the currency major pair for the fourth consecutive day.
The US 10-year Treasury yield pauses a four-day downtrend near the lowest levels since February, adding one basis point (bp) to 1.209% at the latest. In doing so, the risk barometer struggles for clear direction amid mixed catalysts.
On a positive note, US Senate Majority Leader Chuck Schumer’s announcement of a procedural vote on an infrastructure bill, on Wednesday, as well as hopes of more vaccines in Australia seems to probe the pessimists. Even so, US diplomat Schumer’s comments suggesting, “Wednesday not a deadline for every detail of the bill,” join Sino-American tussles to trouble the traders.
It is worth noting that the US recently boosted a travel alert for the UK to convey Delta variant fears, adding challenges to market sentiment. Also, South Australia announced a seven-day lockdown and Victoria extends activity restrictions for one more week to roil the risk appetite.
Later today, the German Producer Price Index (PPI) for June, expected 8.5% versus 7.2% YoY, may keep the ECB hawk’s hopeful and back the EURUSD but the details of the ECB Banking Lending Survey, will be observed for further details. To conclude, the market sentiment remains the key driver for the pair ahead of the ECB.
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