Euro to USD News - The EUR/USD currency pair movement halted after a two-day increase. In the Asian trading session on Wednesday, this pair traded around 1.0870. Nonetheless, the EUR/USD exchange rate strengthened due to the weakening of the US Dollar (USD), triggered by negative economic data from the United States (US) on Tuesday.
 
The US Consumer Confidence Index for August decreased to 106.1 from the previous 114.0, falling short of the previous bias of 116.0.
 
Additionally, the US JOLTS job openings fell in July, recorded at approximately 8.827 million, compared to the prior figure of 9.165 million. This data contrasted with expectations predicting an increase to 9.465 million.
 
Market participants predict that the US Federal Reserve (Fed) will halt interest rate hikes until the upcoming September meeting. According to the CME FedWatch tool, the market reflects an approximately 11.5% chance of a rate hike during the September meeting. This sentiment has pressured the value of the dollar.
 
Moreover, during the Jackson Hole Symposium, Fed Chair Jerome Powell stated that the Fed's next decision regarding interest rate hikes will depend on economic data.
 
Therefore, traders dealing with the EUR/USD pair are awaiting the publication of US and Eurozone economic information, which will soon be released. They seek a clearer understanding of how the inflation scenario is developing in both regions.
 
The anticipated data includes the ADP US Employment Change report for August and the preliminary report on the Annual Gross Domestic Product (Q2), scheduled for release during the North American trading session. Regarding the Eurozone economic schedule, focus will be on reports about Consumer Sentiment and preliminary indices on the Consumer Price Index (CPI) in Germany, as well as the Harmonized Consumer Price Index.
 
The DXY, or US Dollar Index, which measures the performance of the US Dollar (USD) against six other major currencies, is currently trading higher at around 103.60. At the time of writing, this index is preparing to correct its decline over the previous two days. Pressure on the US Dollar arises from the plummeting yields on US Treasury bonds. The yield on 10-year US bonds also fell by 2.04% on Tuesday and is currently at 4.12%.
 
Warning!

This analysis is based on fundamental and technical perspectives from reliable sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information as a reference for your trading.
 
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