The EURUSD pair battles to stretch the previous day’s bullish show, retreating towards 1.1200 during a quiet Asian session on Tuesday.
The major pair climbed the most since mid-November the previous day as the market’s shifted attention from the hawkish Fed, which in turn allowed traders to pare the latest losses.
The risk-on mood favored Wall Street benchmarks and dragged the US Dollar Index (DXY) but the US Treasury yields remained sluggish.
That said, various Fed policymakers conveyed their dissatisfaction with the higher inflation and favored rate hikes in March. Among the key Fed speakers were Atlanta Fed President Raphael Bostic and Kansas City Fed President Esther George, not to forget Federal Reserve Bank of San Francisco President Mary Daly.
It’s worth noting that the market’s wait for the key European Central Bank (ECB) meeting, up for publishing on Thursday, also challenges the EUR/USD moves as the US Treasury yields remain lackluster while the S&P 500 Futures print mild gains of late.
Moving on, German Retail Sales for December, expected -0.6% YoY versus -2.9% prior, will entertain EUR/USD traders ahead of the US ISM Manufacturing PMI for January, expected 57.5 versus 58.7 prior, for immediate direction. However, major attention will be given to the Fedspeak and developments concerning Russia.
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