The euro alternates gains and losses against the US dollar causing. EURUSD to sway without a distinct direction just above the 1.0700 yardstick on Tuesday.
EURUSD is focusing on data and the ECB.
The EURUSD pair remains volatile, owing to the similarly erratic market activity around the dollar. And the lack of major drivers in the macro picture.
On the latter, unaltered forecasts continue to envision. The Fed halting its hike cycle as early as the June meeting. While the ECB is expected to tighten further at the June and July meetings.
Still centered on the ECB, Board member K. Knot advocated for continuing rate rises until inflation reached the bank’s aim. He admitted that inflation is too high. albeit the worst looks to be behind us. He noted that he is still waiting to see the full impact of ECB tightening at a time. when second-round impacts appear to have begun to emerge.
In the eurozone, the HCOB Construction PMI in Germany increased to 43.9 in May. while Retail Sales in the eurozone and the ECB’s Consumer Expectations Survey are expected next.
Later in the NA session, the single release will be the IBD/TIPP Economic Optimism Index.
What to watch for in the Euro
EURUSD is hovering around the 1.0700 level amid the uncertainty On Tuesday. Global markets lacked direction.
Meanwhile, the pair’s price movement is expected to closely mimic that of the US Dollar. And will be influenced by any variations in approach between the Fed and the ECB . In terms of interest rate adjustment plans.
Moving forward, aggressive ECB continues to promote more rate rises. Despite some loss of momentum in the region’s economic fundamentals.
