EUR/USD hovers near highs awaiting Eurozone Inflation data
EUR/USD posts marginal gains on Tuesday, trading at 1.1615 at the time of writing, after retreating from two-week highs above 1.1650 the previous day. The US Dollar (USD) has bounced up from lows, with investors cautious, awaiting the release of the Eurozone's preliminary Harmonized Index of Consumer Prices (HICP) and the Unemployment Rate.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of six major peers, found some footing on Monday, in spite of a weak US ISM Manufacturing Purchasing Managers' Index (PMI), which showed that the sector's activity contracted for the ninth consecutive month, with new orders and employment declining and inflationary pressures rising.
The Bank of Japan (BoJ) Governour Kazuo Ueda rattled markets on Monday, hinting at a rate hike in December. The comments triggered a global sell-off in bond markets, which sent US Treasury yields higher and provided some support to an ailing US Dollar.
A well-received auction of Japanese Government Bonds earlier on Tuesday has somewhat eased fears, although risk appetite remains frail. The US economic calendar is thin today, and the focus will remain on the ISM Services PMI and the ADP Employment Change report, due on Wednesday.
Source : Fxstreet.com
