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The euro (EUR) has extended its weakness against the U.S. dollar (USD) from the start of the week, causing EUR/USD (EUR/USD) to fall to around 1.0550 so far on Tuesday.
In contrast, the U.S. Dollar Index (DXY) shows that the greenback is retracing losses and managing to bounce back from earlier lows around 105.90, all against the backdrop of rising risk aversion as geopolitics in the Middle East continues to heat up. of.
On the monetary policy front, investors currently expect the Federal Reserve (Fed) to maintain interest rates at current levels for the remainder of the year. Meanwhile, speculation continues that the European Central Bank (ECB) may pause policy adjustments even though inflation has exceeded the bank’s target, and concerns about a future recession or stagflation in the European region are growing.
On the euro front, European Central Bank President Christine Lagarde will speak at the International Monetary Fund/World Bank meeting.
In the United States, the NFIB Business Optimism Index will be released, followed by wholesale inventories and Atlanta Fed Raphael Bostic (2024 voting member, hawk), FOMC President Christopher Waller (permanent voting member, hawk) and a speech by Minneapolis Fed Neel Kashkari (voting committee member, centrist).
