Ella 
Euro (EUR) has lost some of its upward momentum against the US dollar (USD), forcing EUR/USD to retreat back to the 1.0860 area after hitting multi-day highs on Tuesday, just shy of the 1.0900 figure.
On the other hand, the U.S. dollar managed to put a smile back on its face, shrugging off some of the sharp pullback triggered by the previous session’s data, with the U.S. dollar index (DXY) back in the 103.60 range after the opening of European markets and a modest rebound in U.S. yields across maturities.
At the same time, the Federal Reserve’s (Fed) policy of “tightening policy and extending maturities” seems to have been weakened by recently released data, which also poured cold water on expectations of a 25 basis point interest rate hike at the November 1 meeting. .
In contrast, there is no news on a possible interest rate decision from the European Central Bank (ECB) after the summer.
In terms of data in the region, the latest inflation data released by Spain showed that as of August, Spanish CPI increased by 2.6% year-on-year, while Italy’s consumer confidence index fell slightly to 106.5 this month. The final Eurozone consumer confidence index and German inflation data will be released later.
In the US, investors will be watching the release of the ADP report, followed by another estimate of second-quarter GDP growth, Pending Home Sales and the flash Goods Trade balance. Balance) data.
