EUR/USD Price Forecast: Upbeat US Dollar stresses on major currency pair
The Euro (EUR) trades 0.2% lower to near 1.1593 against the US Dollar (USD) during the European trading session on Tuesday.
During the European trading session on Tuesday, the Euro (EUR) experienced a slight decline, trading near 1.1593 against the US Dollar (USD). This was influenced by the US Dollar's outperformance, driven by expectations of the Federal Reserve (Fed) raising interest rates soon. The US Dollar Index (DXY), which measures the Greenback's value against six major currencies, rose by 0.2% to approximately 99.60.
Analysts at Rabobank noted that Fed Chair Kevin Warsh's recent address to the Jackson Hole Symposium showcased a more inflation-fighting stance, suggesting a potential shift in the Fed's communication strategy. This development could benefit the US Dollar and pressure the Euro's value. Additionally, investors are keeping an eye on the upcoming US ISM Manufacturing PMI data for August and the US JOLTS Job Openings data for July.
In the Eurozone, the preliminary Harmonized Index of Consumer Prices (HICP) for August increased to 3.3% year-on-year, surpassing the expected 2.9% and indicating stronger inflation.
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