EUR/USD Situation Update

The EUR/USD currency pair is attempting to stabilize around 1.1600 during the Asian session on Wednesday, following three days of declines. Major currency pairs are facing difficulty making any significant gains as the US dollar (USD) continues its upward trend, buoyed by diminishing trade tensions between the US and China.

As of now, the US Dollar Index (DXY), which gauges the dollar against six major currencies, has held steady at approximately 99.00.

The tension between the US and China seems to be easing. This follows remarks from President Donald Trump suggesting that an agreement could be reached after his upcoming meeting with Chinese leader Xi Jinping in South Korea later this month.

Additionally, expectations are growing that the federal government may reopen after nearly three weeks of shutdown. White House economic adviser Kevin Hassett indicated on Monday that he believes the shutdown could end this week.

On the other hand, the euro (EUR) is trading with caution ahead of speeches from European Central Bank (ECB) President Christine Lagarde and Deputy Governor Luis Deguindos, which are set to occur at the beginning of the North American session.

The next significant development for the euro will be the ECB’s monetary policy announcement scheduled for next week.