EUR/USD falls further to near 1.1630 ahead of ECB Lagarde’s speech
EUR/USD slides further to near 1.1630 as the US Dollar gains due to multiple tailwinds.
US economic adviser Hassett expresses confidence that government shutdown could end this week.
Investors await speech from ECB President Lagarde at 11:00 GMT.
The EUR/USD pair extends its two-day downside move to near 1.1630 during the Asian trading session on Tuesday. The major currency pair faces selling pressure as the US Dollar (USD) gains on hopes that the ongoing United States (US) government shutdown will end this week.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, extends its upside to near 98.70.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
On Monday, White House economic adviser Kevin Hassett stated in an interview with CNBC, "I think the Schumer shutdown is likely to end sometime this week.” Hassett referred Democratic leader Chuck Schumer in his statement.
Another reason behind strength in the US Dollar is the growing expectations among market participants that the US and China will reach a consensus when President Donald Trump and Chinese leader Xi Jinping will meet later this month at the Asia-Pacific Economic Cooperation meeting in South Korea.
On the domestic front, investors await the delayed US Consumer Price Index (CPI) data for September, which will be published on Friday. The inflation data will significantly influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.
Though investors have underpinned the US Dollar against the Euro (EUR), the latter trades higher against its other peers ahead of the speech from European Central Bank (ECB) President Christine Lagarde at 11:00 GMT. Lagarde is expected to provide cues about how long the ECB will keep interest rates at their current levels. Investors would also like to know the impact of ban on imports of Russian gas on the economy on inflation in the near term.
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