Euro struggles as softer-than-expected US econoomic data offer little relief
EUR/USD struggles to attract buyers on Tuesday despite below-forecast US economic data, as the US Dollar (USD) shows little weakness following the release. At the time of writing, the pair trades around 1.1601 after touching an intraday low of 1.1587, but remains down roughly 0.14% on the day.
The Euro (EUR) is struggling against the US Dollar (USD) amid softer-than-expected US economic data, which provided little relief to the struggling currency. The ISM Manufacturing PMI fell to 54.6 in August, missing the forecasted 55.2, while the ISM Prices Paid Index remained below expectations at 71.1. The JOLTS Job Openings figure also fell short of expectations, trading at 7.271 million in July.
The US Dollar Index (DXY) retreated toward 99.55, showing limited downside as hawkish Fed expectations remain. Fed Chair Kevin Warsh's tough stance at the Jackson Hole Symposium and Fed Governor Michael Barr's warning about persistent inflation above target have fueled expectations of a September rate hike. The Eurozone is also expected to raise interest rates this month, with the Eurozone HICP increasing by 0.4% MoM in August.
The Euro faces additional challenges from elevated oil prices due to Middle East tensions, which heighten inflation risks.
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