The major currency pair remains under pressure on Tuesday due to a lack of news.
Bears continue putting pressure on EURUSD on Tuesday. The current quote for the instrument is 1.0819.
Since there are no macroeconomic statistics today, the overall market situation isn’t changing much, and investors are focusing on obvious risks. One of them is the possibility of the second wave of the coronavirus pandemic and under such circumstances, the USD is acting as a “safe haven” asset.
New cases of the Covid-19 have been reported in China and sensitive investors are obviously suggesting the second possible wave of the coronavirus pandemic. This possibility does exist and since no one in the past has ever faced such a global outbreak, there might be several probable versions of the future.
Later today, the USD is scheduled to report on the Consumer Price Index in April. It will be very interesting and, maybe, sensitive for the American currency, because the indicator is expected to show -0.7% m/m in April after being -0.4% m/m in March. There is a chance that the indicator might even lose much more than expected. In this case, the pressure on the USD will surely increase.
The Core CPI is expected to show -0.2% m/m in April after being -0.1% m/m in the previous month.
The US Federal Reserve didn’t change its inflation target, which means that it remains at 2%.