EUR/USD extends the rally to near 1.1800 ahead of Eurozone inflation, US ISM PMI data
The EUR/USD pair trades in negative territory near 1.1790 during the early European session on Tuesday. The US Dollar (USD) weakens against the Euro (EUR) amid rising fiscal worries and uncertainty around trade deals. The preliminary reading of the Harmonized Index of Consumer Prices (HICP) for June from the Eurozone and the US ISM Manufacturing PMI will be the highlights later on Tuesday.
The Financial Times reported on Tuesday that US officials are looking for narrower deals to avert the looming reimposition of US tariffs. Four people familiar with the talks said US President Donald Trump’s administration was seeking phased deals with the most engaged countries as they hurried to reach an agreement by the July 9 deadline. The uncertainty around trade agreements continued to weigh on sentiment and exert some selling pressure on the Greenback.
Investors are concerned about the US Senate's attempts to pass Trump's tax cut and spending bill, which faces internal party disagreements over its predicted $3.3 trillion addition to the national debt. Fiscal worries have dampened optimism and contributed to the USD’s downside. This, in turn, acts as a tailwind for the major pair.
Source: FXstreet
