- Euro strengthens against the dollar after a brief pullback
- Dollar struggles with growth concerns and fiscal impass
- Market eyes Final Eurozone Services PMI, ADP report and the US ISM PMI
The EUR/USD pair has now managed to shrug-off the start-of-the-week weakness and managed to attract buyers; bouncing back from below 1.1700 levels on Monday, it had climbed up further on Tuesday.
The up-move was helped by the continued weakness in the US dollar, despite the US ISM Manufacturing PMI beating expectations; subdued hopes of a US economic recovery checked bullishness in the greenback.
The congressional impasse over the US fiscal stimulus and the recent drop in the treasury-bond yields also cut the long positions in the US dollar.
The US lawmakers had failed to agree on the details of a new coronavirus relief package despite the earlier unemployment benefit expiring last Friday. Whitehouse and congressional Democrats are working around the clock to nail-a-deal before the end of this week, reports suggest. It is also important to note that the US Treasury Secretary Steven Mnuchin hinted that the deal, if any, would be much less than 3.4 trillion dollars sought by the Democrats.
EUR/USD is trading higher today in the Asian session, around 1.1800 marks. Traders will be eyeing the Final Eurozone Services PMI for further clarity; later, in the US trading hours, the ADP report on private-sector employment and ISM Non-Manufacturing PMI will help to set the tone for the pair.