EUR/USD struggles near five-month lows around 1.1730 ahead of German data
- EUR/USD makes effort to bounce back from five-month low levels on Tuesday.
- US Treasury yields undermine the demand for the US dollar.
- US Dollar Index stands tall near 93.00 strong job data, US bipartisan infrastructure bill and Fed’s tapering expectations.
After witnessing sharp declines in the previous week, EUR/USD remains quiet since the beginning of the week. The pair confides near its five-month ahead of key Eurozone data.
At the time of writing, the EUR/USD is trading at 1.1740, up 0.02% on the day.
The US 10-year benchmark Treasury yields progressed toward 1.32% with 0.45% gains on better than expected jobs opening data. Jobs openings rose higher in June, reaching 10.1 million, the labour Department reported
The US Dollar Index (DXY), which tracks the performance of the greenback against the six major rivals traded higher near 93.00.
In addition to that Atlanta, Fed President Raphael Bostic and Richmond Fed President Tom Barkin reaffirmed their stance on rising inflation, which is already at a level that could justify one of the conditions for the beginning of rate hikes.
Meanwhile, US Senate remained committed for Tuesday vote on the passage of a $1 trillion infrastructure bill, and then immediately begin to debate another massive $3.5 trillion bill.
On the other hand, the single currency traded below 1.1800 in the second week of August, the lowest level since the end of March.
German ZEW Survey data will be in focus today to gauge the shared currency performance against the US dollar. The Economic Sentiment Indicator dropped to 63.3 in July, much below the market expectations of 75.2.
Another set of data include Euro ZEW Survey, US Nonfarm Productivity, and Unit Labor Costs to take fresh trading impetus.
EUR/USD additional levels