- EUR/USD extends the previous week’s consolidation on Tuesday.
- The Euro continues to trade in a range bound manner for the past two weeks.
- The US dollar index retreats from its four months high near 93.20 as risk sentiment improves.
EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement.
At the time of writing, the EUR/USD pair is trading at 1.1804, up 0.04% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against six major rivals, slips below the 93.00 mark.
Investors moved to the riskier assets as Wall Street gained on upbeat corporate earnings, which signifies the improved business performance after the recovery from the pandemic.
Meanwhile, the US infrastructure deal is still not resolved on issues like transit funding, redirecting covid relief money, and ensuring its fully paid.
On the other hand, the shared currency managed to hold the ground against the greenback after the European Central Bank (ECB) held the monetary policy steady on Thursday, but tweaked its forward guidance to reflect its recently-hiked inflation target.
As for now, investors are waiting for the US Durable Goods Orders to take fresh trading impetus.