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- Upside correction in EUR/USD unable to make a run clear above 1.1900.
- US Dollar trims losses but remains under pressure on Tuesday.
The EUR/USD is holding onto daily gains on Tuesday, ending a four-day negative streak. The pair peaked on European hours at 1.1914 and pulled back, finding support at 1.1880. As of writing, it is trading at 1.1895, with a bullish intraday bias.
Dollar and yields correct lower
As US yields move off recent highs, the greenback also retreats. The DXY peaked earlier today at the highest level in months at 92.50, and now is it hovering around 92.00. Simultaneously, the 10-year US yield stands at 1.53%, down 4.13% for the day.
Also, the improvement in risk sentiment is keeping the US dollar under pressure. On Wall Street, the Dow Jones gains 0.55% and the Nasdaq 2.67%, recovering after Monday’s slide. Also, silver and gold are sharply higher.
Markets are correcting the recent moves favoring the rebound in EUR/USD. Still, the move is seen as a correction and not as an end of the US dollar run. Regarding the pair, if it rises above 1.1.950, it would further alleviate the bearish pressure, while above 1.2070 could signal an improvement of the euro’s outlook.
Market participants continue to focus on the bond market and in Wall Street. A key event ahead if the European Central Bank on Thursday.