EUR/USD remains vulnerable on risk aversion, accelerating German inflation
EUR/USD steadies in the early European session on Tuesday, but remains close to multi-month lows, trading at 1.1590 at the time of writing. A frail market sentiment, amid ongoing concerns about global trade, is keeping investors' appetite for risk subdued.
News that China and the United States have raised their fees on each other's vessels has reactivated concerns about a trade war between the world's two major economies on Tuesday. This has dampened previous hopes of a de-escalation, following US Treasury Secretary Scot Bessent's announcement on Monday of an upcoming meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping.
Data from Germany revealed that consumer inflation accelerated to 2.4% in September from 2.2% in August, in line with the preliminary reading. The Euro (EUR) edges lower following the data release.
The US economic docket remains thin, amid a data blackout from the US federal government. Still, Federal Reserve (Fed) Chairman Jerome Powell will speak later today. However, in the absence of hard data to contextualize his comments, he is unlikely to alter market expectations of two interest rate cuts by the central bank in the next two meetings.
Source : Fxstreet.com
