EUR/USD

The EUR/USD pair attracts some sellers for the fourth straight day and trades below mid-1.1500s during the Asian session on Tuesday, just above a one-month low touched the previous day.

EUR/USD closed near 1.1550 on Monday, 0.42% lower, and beneath both of its moving averages for the first time since late July. The 50-day and 200-day Exponential Moving Averages (EMA), the chart's two usual reference lines, now sit two pips apart, so the pair fell through one line rather than two.

The US Dollar Index (DXY) held firm at the start of the week, staying above the 99.00 mark and trading near 99.40, still short of the 100.00 threshold.

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is weaker, down about 0.5% versus the US Dollar (USD), as risk aversion supports broad USD strength. Yield spreads imply a fair value near 1.1633, while data have been light ahead of Tuesday’s ZEW survey.

EUR/USD trades under pressure on Monday, with the Euro (EUR) losing around 0.55% against the US Dollar (USD). The Greenback strengthens across the board as traders position for a possible Federal Reserve (Fed) interest rate hike at the September 15-16 monetary policy meeting.

DBS Group Research’s Philip Wee argues that the Euro has a subtle advantage over the Dollar this week, as the European Central Bank’s recent hikes and focus on inflation underscore its institutional credibility.