The EURUSD pair has been correcting lower on Tuesday after three days of gains. The price failed to keep above the 1.17 threshold and is getting back below the 20-DMA, down to session lows around the 1.1670 area. The short-term technical picture points to downside risks for the single currency.
The dollar regains the positive momentum today, with risk-off sentiment eases as well as demand for Treasuries. Should Trump refrain from new threats and protectionist rhetoric in the nearest future, the risky assets will stage a more pronounced recovery, and the pressure on the greenback will ebb further.
Apart from the overall sentiment around the trade conflicts globally, the US economic data will drive the sentiment in the pair in coming days. Market participants will focus on the US GDP numbers on Wednesday, while the PCE data will be the key release. The euro zone CPI report on Friday will also matter for EURUSD. The pair could lose ground should the US figures come in on the stronger side. On the downside, the key is the 1.1530 support area.
The dollar regains the positive momentum today, with risk-off sentiment eases as well as demand for Treasuries. Should Trump refrain from new threats and protectionist rhetoric in the nearest future, the risky assets will stage a more pronounced recovery, and the pressure on the greenback will ebb further.
Apart from the overall sentiment around the trade conflicts globally, the US economic data will drive the sentiment in the pair in coming days. Market participants will focus on the US GDP numbers on Wednesday, while the PCE data will be the key release. The euro zone CPI report on Friday will also matter for EURUSD. The pair could lose ground should the US figures come in on the stronger side. On the downside, the key is the 1.1530 support area.