EUR/USD strives to gain ground near 1.1600, outlook remains uncertain

• EUR/USD struggles to stabilize near 1.1600 as the US Dollar remains upbeat.

• Receding US-China trade tensions and hopes of federal reopening have supported the US Dollar.

• Investors await key ECB speeches for fresh cues on the interest rate outlook.

The EUR/USD pair attempts to stabilize around 1.1600 during Wednesday’s Asian session, following a three-day losing streak. The major currency pair struggles to gain ground as the US Dollar (USD) holds its recent upside move, which came in the wake of easing trade tensions between the United States (US) and China.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds onto recent gains near 99.00.

Trade tensions between the US and China appear to be receding following comments from President Donald Trump that both Washington and Beijing will reach a consensus after his meeting with Chinese leader Xi Jinping in South Korea later this month.

Another reason behind firmness in the US Dollar is growing expectations that the federal government could reopen after almost three weeks of shutdown. On Monday, White House economic adviser Kevin Hassett stated that he thinks the shutdown will likely end sometime this week.

Meanwhile, the Euro (EUR) trades with caution ahead of speeches from European Central Bank (ECB) President Christine Lagarde and Vice-President Luis De Guindos, which are scheduled during the early North American session.

The next major trigger for the Euro would be the ECB’s monetary policy announcement scheduled for next week.