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EUR/USD struggles despite softer US data
The euro fell to 1.1587 intraday and remained down about 0.14%, as Fed expectations stayed hawkish after US ISM and JOLTS data.
EUR/USD struggled to attract buyers on Tuesday after US economic releases came in below forecast, even as the US Dollar showed limited weakness. The pair was around 1.1601 at the time of writing after dipping to an intraday low of 1.1587, leaving it down roughly 0.14% on the day.
US data showed the ISM Manufacturing PMI falling to 54.6 in August from 55.6 in July, missing the market estimate of 55.2. The ISM Prices Paid Index held at 71.1 versus expectations of 72.0, while JOLTS Job Openings rose to 7.271 million in July from 7.182 million, but were below the 7.3 million forecast.
The US Dollar Index, or DXY, retreated toward 99.55 after an intraday high near 99.65. FXStreet said the downside for the greenback looked limited because the data did not significantly change hawkish Federal Reserve expectations tied to inflation concerns, including remarks from Fed officials that emphasized risks from inflation staying above target.
With markets already focused on Friday’s Nonfarm Payrolls report, FXStreet noted that traders see about a 66% probability of a September rate hike using the CME FedWatch tool. In Europe, the outlet also pointed to expectations that the ECB will raise rates in September, citing Eurozone HICP inflation rising 0.4% month over month in August and ECB policymaker Gediminas Šimkus saying rates should be hiked in September.
Latest closeEUR/USD 1.160 ▼0.2%|Dollar index 99.65 ▲0.2%