EUR/USD Strengthens On Weaker Greenback, But Key Technical Barriers Remain
EUR/USD rose for the second straight day on Tuesday, pushing the pair back towards the 1.1300 level. Although the short-term bullish momentum is strengthening the Fiber, EUR/USD is still far behind the recent multi-year highs near 1.1575. The pair has found a strong technical base off the key moving averages, and the overall market sentiment remains hopeful that traders will be able to continue finding reasons to hit the buy button.
Tariffs dominate market perception, but US data looms ahead
European policymakers are currently busy with the G7 meeting, minimizing major headlines from key EU decision-makers. The overall market sentiment remains heavily dependent on trade headlines from the US, with investors hoping that a deal will be reached with the Trump administration that will encourage President Donald Trump and his staff to take the tariff gun away from their own economic chiefs.
Although the overall global market tone is optimistic, the steady movement in an unknown direction is starting to limit bullish sentiment. The Trump administration is fast approaching its self-imposed 90-day deadline for its “reciprocal tariff” package. While some potential trade deals have been announced, nothing concrete has been forthcoming.
There will be limited data on Wednesday, with only mid-level data on deals on both sides of the Pacific. US Purchasing Managers’ Index (PMI) figures are expected to be mixed on Thursday. The US Manufacturing PMI in May is expected to fall to 50.1 from 50.2, while the Services component is expected to remain flat at 50.8.
Source: FXStreet
