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Forex - Euro edges higher against dollar

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Investing.com -

Investing.com - The euro edged higher against the dollar on Tuesday as U.S. Treasury yields fell for a second day, pressuring the greenback lower.

EUR/USD edged up 0.08% to 1.3612, off lows of 1.3588.

The pair was likely to find support at 1.3540 and resistance at 1.3610, Friday's high.

The yield on the U.S. 10-Year Treasury note fell to a one-week low of 2.58% on Tuesday, amid concerns that recent data showing that the labor market is continuing to strengthen will not be enough to prompt the Federal Reserve to bring forward its timetable for raising interest rates.

The greenback was boosted after data late last week showed that the U.S. economy added a larger-than-forecast 288,000 jobs last month, while the unemployment rate ticked down to 6.1%, the lowest in almost six years.

But the dollar's gains against the other major currencies paused on Tuesday due to the belief that the Fed will stick to its dovish stance on monetary policy amid concerns over ongoing slow growth in inflation and wages.

Markets were looking to Wednesday's minutes of the Fed's June meeting for further indications on its monetary policy stance.

The euro's gain were held in check after German trade data earlier in the day showed that both imports and exports fell in May, adding to concerns over the outlook for the broader euro zone economy.

The euro moved lower against the yen, with EUR/JPY down 0.26% to 138.21.

Elsewhere, the dollar was also down against the Japanese currency, with USD/JPY losing 0.31% to trade at 101.54, off last Thursday's two-week high of 102.25.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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