EUR/USD resists decline, holds on 1.0730

Early Tuesday trading saw a decline in the EUR/USD pair, and buyers are attempting to make up ground. Midweek economic data from the US and EU will make the charts more difficult to read. Along with US inflation data due soon, the ECB rate decision is just around the corner.

After initially ascending the charts, the Euro was pulled lower against the USD in early Tuesday trading, and the pair is unable to generate any significant momentum from the 100-hour Simple Moving Average (SMA). It’s important to remember that the EUR/USD has closed down for the past eight weeks in a row.

In an effort to regain equilibrium on Tuesday, the EUR/USD pair is pushing into 1.0735 in afternoon trading after falling to the day’s lows near 1.0705. The Euro is trading near its day low against the dollar, having dropped from Tuesday’s opening prices of around 1.0747 and the day’s early peak of 1.0770.

The economic calendar for the middle of the week is strong, with data for both the US and the Eurozone (EU) scheduled for release on Wednesday and Thursday. As a result, the tug-of-war is expected to continue in the near future.

The US Consumer Price Index (CPI) numbers and the federal government’s Monthly Budget Statement are both on the economic schedule for Wednesday. Generally speaking, market analysts anticipate that the US headline CPI for August will tack up to 0.6%, up from the 0.2% recorded in July. Meanwhile, it is anticipated that the Core CPI for August (CPI minus food and energy costs) would remain unchanged from the previous month’s figure at 0.2%.

The August federal budget deficit in the US is also anticipated to worsen, falling by $240 billion from the $221 billion shortfall in July. The European Central Bank (ECB) will announce its most recent interest rate decision on Thursday; investors anticipate the ECB to maintain its current course, despite recent hawkish remarks from ECB officials increasing market participants’ expectations of further rate increases.

A news conference with ECB officials will take place 30 minutes following the rate call, and investors will be watching attentively for any clues regarding the future course of the European central bank’s interest rate policy.

The European Central Bank (ECB) will announce its most recent interest rate decision on Thursday; investors anticipate the ECB to maintain its current course, despite recent hawkish remarks from ECB officials increasing market participants’ expectations of further rate increases.

A news conference with ECB officials will take place 30 minutes following the rate call, and investors will be watching attentively for any clues regarding the future course of the European central bank’s interest rate policy.