EUR/USD gives away previous gains as risk aversion prevails
EUR/USD upside attempts have been short-lived, and the pair has returned to levels below 1.1510 at the time of writing, approaching session lows at 1.1500 after being rejected at 1.1530. The pair remains vulnerable, following a nearly 1.3% sell-off in the last four trading days, as the US Dollar (USD) surged following a "hawkish cut" by the Federal Reserve (Fed) last week.
On Monday, the US Dollar continued strengthening, unfazed by downbeat manufacturing activity data in the United States (US). October's ISM Manufacturing Purchasing Managers' Index (PMI) showed that the sector's economic activity contracted for the eighth consecutive month, weighed by a decline in orders and highlighting low employment levels.
In addition, Federal Reserve (Fed) policymakers reiterated their division on the path forward, with San Francisco Fed President Mary Daly and Chicago Fed President Austan Golsbee showing a cautious stance, while Governor Stephen Miran said that current policy is too restrictive.
In the Eurozone economic calendar, European Central Bank (ECB) President Christine Lagarde will speak later in the day, although she is unlikely to say anything new on monetary policy. In the US, the government shutdown will deprive markets of the US JOLTS Job Openings and Factory Orders data for September, while investors will be looking to Wednesday's ADP Employment Change release for October for further insight into the labour market trends.
Source : Fxstreet.com
