Over 1.0050, EUR/USD made a comeback before the American session.
The four-hour RSI indicator fell to 20, and the EUR/USD pair is trading near the bottom of the falling regression channel that started in late June. Both technical changes show that the pair has sold too much. Before going short on the couple, sellers may wait for a technical correction.
Money market bets that the ECB will raise rates at the end of the year may drop from 145 basis points (bps) on Monday to 137 bps on Tuesday.
Monday, German Economy Minister Robert Habeck said it’s hard to know if Nord Stream 1 will start up again after maintenance. Habeck said, “We need to be ready to replace shipments after being fixed.”
The NFIB Business Optimism Index and the IBD/TIPP Economic Optimism Index will release later. According to the latest Consumer Survey of Consumer Estimates from the Federal Reserve Bank of New York, US consumers’ expectations for inflation in one year rose from 6.6 per cent in May to 6.8 per cent in June. Karine Jean-Pierre, the press secretary for the White House, said that she thinks the CPI numbers will be “very inflated.”
Conclusion
Investors will stay away from risky assets in the afternoon unless US business statistics significantly improve.