EUR/USD inches higher as US–China optimism pressures US Dollar
EUR/USD registers modest gains on Tuesday, yet it remains trading within familiar levels amid the lack of catalysts as the US government remains shut. However, upbeat news regarding the US-China trade war, weakened the Dollar and boosted the Euro. The pair trades at 1.1654, up 0.09%.
Euro gains 0.09% amid US shutdown and cautious Fed outlook ahead of rate decision
The US and China agreement on a trade framework weighed on the US Dollar, which is usually sought as a safe-haven asset. Also, data showed that US households are growing less optimistic about the economy as shown by the Conference Board (CB) Consumer Confidence data for October.
Aside from this, traders’ attention turned to the Federal Reserve’s monetary policy decision on Wednesday. The Fed is expected to reduce borrowing costs, even though the central bank is data-dependent, but the government shutdown, keeps the markets and the Federal Reserve, leaning on past data.
In Europe, the European Central Bank (ECB) Consumer Expectation Survey revealed that one-year inflation expectations slip from 2.8% to 2.7%, while the three year, remained steady at 2.5%.
Meanwhile, the European Central Bank is expected to hold rates unchanged at 2% on Thursday, which could lend further support to the shared currency.
Source: fxstreet
