EUR/USD retreats from daily highs near 1.1850 on USD rebound, German data eyed
- EUR/USD holds mild losses on Wednesday after the previous day gains.
- US Dollar Index rebounds slightly near 92.70, still below the last week’s high.
- The Euro remains under pressure on downbeat economic data.
The EUR/USD pair has been tracking minor losses in the Asian session. The pair hovers in a very narrow trade band with a negative bias.
At the time of writing, the EUR/USD is trading at 1.1805, down 0.02% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, rebounds near 93.00, which capped the gains for EUR/USD.
The single currency is weighed down by the downbeat economic data. Eurozone inflation jumped to a 10-year high in August with an expectation of further rise, which challenged the European Central Bank’s view on price growth. The Consumer prices rose 3%, surpassing the projections of all 37 economists in a Bloomberg survey.
Meanwhile, the Consumer Confidence Indicator came at -5.3 in August, lower from -4.4 in the previous month.
European Central Bank (ECB) policymaker Klass Knot signaled that the central bank might start reducing the pace of the Pandemic Emergency Purchase Program (PEPP) as reported by Reuters.
Investors turn their attention to German Retail Sale data, US ADP Employment, and ISM Manufacturing Purchasing Managers Index (PMI) data to take trade insight.
EUR/USD additional levels