The EUR/USD currency pair struggled for further traction during the European session on Tuesday, maintaining a tight range just under the 1.0800 level. Market sentiment now appears tenuous, and traders are taking a wait-and-see attitude. One factor behind this stagnation is uncertainty over US tariffs and the likely result from US-Russia negotiations on a peace deal for Ukraine. The Gold price jumped up aggressively today, putting an end to its three-day streak of losses. Support for its rise came from a softer US dollar and increasing expectations that the Federal Reserve will soon restart its rate-cutting cycle.
As the day wears on, all eyes focus on a handful of other notable economic indicators and speech. From the business pulse and consumer confidence surveys, we’ll learn a lot about which way the US economy is headed. Today, all eyes will be on the release of US consumer sentiment data. Market participants are looking at the EUR/USD pair closely and digesting US macroeconomic data. In addition, they are listening to the comments from Federal Reserve officials themselves for any new clues.
Looking ahead to the end of the week, core PCE has everyone’s attention as it’s the Federal Reserve’s preferred inflation measure. That data will be key in continuing to track inflation trends and guide expectations for what changes may come next to monetary policy direction. At the same time, the relatively weaker US dollar keeps supporting Gold prices, providing a safe-haven for investors facing growing economic worries.
During the European trading session on Tuesday, the EUR/USD currency pair was able to hold on to its gains above the 1.2900 threshold. Traders are now looking to US macroeconomic data and Federal Reserve commentary for further market direction. The first big data miss came from Germany as the IFO Business Climate index improved but was below expectations in March. This congestion adds a whole new level of complexity to the current and prevailing economic landscape.