Dollar eases on quiet Tuesday

The greenback was trading somewhat lower on Tuesday morning, with the EURUSD pair hovering above 1.18, and the USDJPY pair was seen slightly above 106.

The EU stock markets are expected to open somewhat higher, but US equity futures are posting solid gains, following yesterday’s rebound. 

The European Central Bank meets on Thursday, and expectations are growing. It may be forced into action following the Federal Reserve’s change in inflation tolerance at its last meeting at the end of August.

Inflation in the eurozone remains very low, and the euro has been surging dramatically over the previous months, which will lead to disinflationary pressures even more. If these trends continue, the ECB will be forced to “do something.”

Later today, the EU GDP for the second quarter is due, and since this is only a revision, investors are not forecasting any changes. The quarterly change is expected at -12.1%, and the year-over-year change should come out at -15%. 

The US exchanges will open again after yesterday’s holidays, and futures are up significantly since Friday. Therefore, it looks like the bull market will continue, and we might be at new highs in the next days. 

Source: https://www.axiory.com/market-news/dollar-eases-on-quiet-tuesday