- EUR/USD continues to trade on the defensive this Wednesday.
- The US Dollar remains steady near 94.00 following an uptick in the US T-bond yields.
- Dismal German data, softer view on inflation cement dovish ECB stance.
EUR/USD remains muted in the Asian session on Wednesday. The pair posted losses for the third straight day. At the time of writing, EUR/USD is trading at 1.1599, up 0.03% for the day.
The greenback trades near 94.00, tracking the rebound in the US 10-year benchmark Treasury yields. Investors remained concerned about the policy outlook guidance from upcoming central bank meetings. The dollar remained strong against the euro and the yen on monetary policy divergence.
The shared currency came under pressure after a European Central Bank (ECB) survey showed that the Eurozone banks tightened access to mortgages in the last three months and expected to continue doing so in the final quarter of 2021. The survey came two days before the ECB is set out to assess the economic situation, paving the way for a decision in December on the continuation of the central bank’s bond-buying program.
In addition to that, the single currency is also weighed down by the signs that the ECB will be among the last to raise rates among major central banks. German data released on Monday showed the deteriorating business morale, which cemented the expectations of a dovish message from Thursday’s ECB meeting.
As for now, traders are waiting for German Gfk Consumer Confidence and US Durable Goods Orders for a fresh trading impetus.
