EUR/USD edges down to near 1.1428 as the US Dollar rebounds. Investors are anticipating the release of the FOMC Minutes for new insights into the trajectory of US interest rates. Cooling Eurozone core inflationary pressures have alleviated concerns regarding additional interest rate hikes by the ECB. The EUR/USD pair is trading slightly lower, approaching 1.1428 in the early European trading session on Monday. The major currency pair encounters modest selling pressure as the US Dollar gains traction following a negative weekly close.
In the late Asian trade, the US Dollar Index, which gauges the Greenback’s value against six major currencies, trades 0.1% higher to near 101.00. Last week, the US Dollar faced downward pressure following the publication of the Nonfarm Payrolls data for June, which indicated moderate labour demand and compelled traders to reassess their expectations regarding the Federal Reserve’s interest rate hikes.
Investors are looking to the Federal Open Market Committee for new insights regarding the outlook on US interest rates. Minutes from the June policy meeting are set to be published on Wednesday. Despite the support from investors for the US Dollar against the Euro, the Euro is showing stronger performance relative to its other counterparts, even as concerns about additional interest rate hikes by the European Central Bank this year have diminished.