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The EUR/USD pair holds steady around 1.0810 on the consolidation of the US Dollar (USD) during the early Asian session on Tuesday. Investors await Germany’s GfK Consumer Confidence data, which is due later on Tuesday.
The rising expectation of a slower pace of US Federal Reserve (Fed) rate cuts is likely to support the Greenback in the near term. Nonetheless, market players will take more cues from the key US economic data this week, including the advanced Gross Domestic Product (GDP) for the third quarter (Q3), ISM Manufacturing PMI, inflation, and employment data.
Meanwhile, traders will closely monitor the US presidential election on November 5. According to polling site FiveThirtyEight, Trump’s possibility of winning the US election has increased to 52% compared to 48% for Vice President Kamala Harris. The uncertainty surrounding this key event might lift the safe-haven currency like the USD against the Euro (EUR).
The European Central Bank (ECB) policymakers have had different views on monetary policy in the previous days. Belgian central bank chief Pierre Wunsch said on Monday that there is no urgency for the central bank to cut interest rates quicker, and it could even live with a small. The less dovish comments from ECB Governor Wunsch help limit the shared currency’s losses. However, the Portuguese central bank chief, Mario Centeno, stated that a 50 basis points (bps) rate cut should be among the options on the table in December.
Scotiabank’s Chief FX Strategist Shaun Osborne noted, “Comments from ECB Governor Wunsch, adding to the raft of voices who have spoken out against upping the pace of rate cuts recently, helped nudge the EUR higher. Moody’s put French debt on negative outlook Friday.”More By This Author:USD/CHF Drifts Higher Above 0.8650 Amid Bullish USDEUR/USD Extends Downside To Near 1.0850, With All Eyes On ECB Rate Decision USD/CAD Posts Modest Gains Above 1.3750, Eyes On US Retail Sales Data
