EUR/USD drops to fresh daily low below 1.1730 on USD strength

FX
  • EUR/USD continues to push lower in the American session.
  • US Dollar Index rose above 93.00 on Tuesday.
  • Greenback capitalizes on safe-haven flows as Wall Street’s main indexes decline.

The EUR/USD pair extended its daily slide in the early American session and was last seen trading at a fresh daily low of 1.1727, losing 0.42% on a daily basis.

DXY advances above 93.00

The unabated USD strength on Tuesday is causing EUR/USD to continue to push lower. The risk-averse market mood seems to be providing a boost to the safe-haven greenback following the mixed macroeconomic data releases from the US. Currently, the S&P 500 and the Nasdaq Composite indexes are down 0.65% and 1.05%, respectively, while the US Dollar Index (DXY) is rising 0.44% at 93.01.

The US Census Bureau reported on Tuesday that Retail Sales declined by 1.1% in July, compared to the market expectation for a decrease of 0.2%. On a positive note, the Federal Reserve’s monthly publication revealed that Industrial Production expanded by 0.9% in July.

Earlier in the day, the data from the euro area showed that the Gross Domestic Product in the second quarter grew by 2% on a quarterly basis, as anticipated.

Later in the session, FOMC Chairman Jerome Powell is scheduled to deliver a speech at a virtual meeting with educators and students and respond to questions from the audience at 1730 GMT.

Powell Speech Cheat Sheet: Three scenarios, only one dollar-negative.

Technical levels to watch for

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