Ella 
In the Asian market on Wednesday, EUR/USD traded around 1.0870, breaking a two-day winning streak. EUR/USD, however, strengthened as the greenback retreated on the back of poor U.S. economic data on Tuesday.
US Consumer Confidence (August) fell to 106.1 from 114.0 previously, below expectations for 116.0. In addition, job vacancies for JOLTs in the United States decreased in July, recording 8.827 million from the previous value of 9.165 million. That was in stark contrast to expectations for a rise to 9.465 million.
Market participants expect the Fed to delay raising interest rates until its September meeting. Markets are pricing in an 11.5% chance of a rate hike at the September meeting, according to the CME FedWatch tool. This sentiment has led to downward pressure on the dollar.
In addition, during the Jackson Hole symposium, Federal Reserve Chairman Powell said that the Fed’s upcoming choice to raise interest rates will depend on economic data.
EUR/USD traders therefore await the release of upcoming economic data from the US and Eurozone to get a clearer picture of inflation in both economies. The data include U.S. ADP employment changes (August) and preliminary annualized GDP (Q2) due later in the North American session. In the euro zone, the consumer confidence index, the initial value of the German consumer price index (CPI) and the Harmonized Consumer Price Index will be released.
The U.S. dollar index (DXY), which measures the performance of the greenback against six other major currencies, was trading higher around 103.60 at press time. The dollar index pulled back from a two-day slide. Falling U.S. bond yields put downward pressure on the dollar. The 10-year U.S. Treasury yield fell 2.04% on Tuesday and is now at 4.12%.
