The EUR/USD pair lost more than 100 pips last week and started the day under modest bearish pressure on Monday with the shared currency struggling to find demand. After trying to test level 1.12 earlier in the US session, the pair experienced a rebound and was last seen at 1.1215, losing 0.08% daily.
At the beginning of the session, data published by Sentix showed that investor confidence continued to deteriorate in July, with the Economic Index falling to its lowest level since November 2014 to -5.8 from -3.3 in June and disappointing the expectation of the market of 0.1 to weigh in the shared currency.
Sentix explained that investors no longer followed the positive signals of global stock indices. “Do not believe in a quick solution to the commercial dispute, Twitter reports alone will no longer attract investors from all over the world outside of their reserves,” the press release said.
In addition, the member of the Governing Council of the European Central Bank, Benoit Coeure, said that the accommodation policy was needed more than ever and added that the bank could restart the purchases of assets if necessary.
On the other hand, the dollar, which recorded decisive gains against its main rivals on Friday after the optimistic US labor market data, remained strong on Monday and made it difficult for the pair to achieve a significant recovery. At this time, the DXY has risen 0.18% on the day to 97.35.
Macro-economic data for the euro area will not be released on Tuesday and markets will be waiting for speeches by FOMC members Bostic and Quarles. Although President Powell also plans to speak tomorrow, his prepared comments are unlikely to touch the prospect of monetary policy.