Tuesday saw a decrease in the euro against a group of significant competitors in European trade, continuing its losses against the dollar and retreating from two-month highs due to profit-taking.
Though it had no effect on trading, officials from the European Central Bank recently made optimistic comments about the likelihood of another interest rate hike.
USD/EUR
After dropping 0.1% yesterday, the first loss in three days, and closing 0.2% short of a two-month high at 1.0756, EUR/USD closed at 1.0695, with a session high at 1.0722.
European Remarks
In recent remarks, the governor of the Austrian Central Bank stated that the European Central Bank (ECB) should exercise care when it comes to inflation and be prepared to raise interest rates again if necessary.
Although an early interest rate cut is anticipated, he rejected requests for them.
If inflation continues to be persistent, such comments have increased the likelihood of another interest rate hike by the European Central Bank.
The Dollar
On Tuesday, the dollar index gained 0.25% vs a group of significant competitors, moving away from two-month lows.
These increases coincided with a rise in US Treasury yields, which supported demand for the dollar.
In search of hints regarding the direction of US interest rates, investors are currently awaiting a range of statements from Fed members.
