EURUSD: dollar looks to move north
The greenback has digested the recent Trump’s verbal interventions and looks to move higher against the majors again, though lacks the impetus so far. The EUEUSD pair has been trading with a mild upside bias on Tuesday, but the recovery attempts look too shallow to allow for a consistent rally from here.
The downside pressure on the buck has eased after Trump’s hints at much stronger-than-expected US Q2 GDP of 4.8% due on Friday. The estimate is really much higher than market expectations of around 4% or slightly higher. On the other hand, should the results come in lower than Trump indicated, the dollar bulls will be disappointed.
By the way, the euro is yet to have a test by EU-US trade negotiations and the ECB meeting on Wednesday and Thursday, respectively. The market doesn’t expect any “hawkish” surprises from Draghi who could express cautious tone amid the rising trade tensions and risks for the region’s economy. So traders will likely refrain from buying the single currency ahead of risk events. The short-term outlook for EURUSD points to a decline below the 1.17 and under the 20-DMA , with the next target at 1.1630.