- EUR/USD pair remains on the back foot on Tuesday.
- Disappointing ZEW Survey weighs on the shared currency.
- US Dollar Index stays in the positive territory above 93.00.
After moving sideways around 1.1750 during the Asian session on Tuesday, the EUR/USD pair came under renewed bearish pressure and dropped to its lowest level since late March at 1.1716. As of writing, EUR/USD was losing 0.15% on the day at 1.1720.
Poor sentiment data hurt EUR
The disappointing ZEW Survey readings from the euro area seems to be weighing on the shared currency on Tuesday. The Economic Sentiment Index for the euro area fell to 42.7 in August from 61.2 in July and missed the market expectation of 72 by a wide margin. Additionally, the Economic Sentiment Index for Germany worsened to 40.4 from 63.3.
On the other hand, the unabated USD strength is making it difficult for EUR/USD to limit its losses. The US Dollar Index is currently holding at its strongest level since July 21 at 93.06, rising 0.1% on a daily basis.
Later in the session, the Nonfarm Productivity and the Unit Labor Costs for the second quarter will be featured in the US economic docket. More importantly, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for July on Wednesday.
US July CPI Preview: Inflation data unlikely to change Fed tapering expectations.