The EUR/USD pair surges above the 1.0880 mark during the early Asian session on Wednesday. The weaker US dollar and a sharp drop in US Treasury yields
The Fed rate hike expectations lowered following the softer US data. Market players await German CPI, US ADP private employment, estimate of US GDP Q2. surges above the 1.0880 mark during the early Asian session on Wednesday. The weaker US dollar and a sharp drop in US Treasury yields drags the Greenback lower across the board. The major currently trades around 1.0880, gaining 0.01% on the day. Meanwhile, the breaks below the key support level at 103.50 while the 10-year yield fell from 4.
On Tuesday, the US Conference Board's Consumer Confidence Index for August dropped to 106.10 from 114.00 in July, below the market consensus of 116.0. In addition, the US JOLTS Job Openings for July decreased to 8.827M versus 9.165M prior and against the 9.465M expected. The figure showed the lowest reading since March 2021. Finally, the S&P/Case-Shiller Home Price Indices improved to -1.2% YoY versus -1.7% prior and -1.2% market expectations.
The labor market in the US is easing, but not as the Federal Reserve expected. The market anticipated that the Fed will push back rate hikes until the September meeting. According to the CME’s FedWatch Tool, markets are pricing in a 16% chance of a rate hike versus 20% prior. This, in turn, exerts some selling pressure on the USD.
On the other hand, the German Gfk Consumer Confidence Survey for September came in at -25.5 versus -24.6 prior and worse than the expectation of -24.3. Meanwhile, the
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