The USA national currency perseveres in efforts to recover ground Wednesday, and unlike major competitors, it is demonstrating mixed dynamics. However, market sentiments around the American dollar remain quite muted in these days as traders are braced for the key events – the meeting minutes of Federal Open Market Committee and the Nonfarm Payroll monthly employment report, which are expected to be publicly available on Thursday and Friday respectively.
The EUR/USD currency pair could not make a significant break above the 20-DMA and stopped below the key 1.17 mark. The price is keeping a negative growth these days, while the euro-zone service PMI failed to give the pair a bullish impetus. This only proves that the general market sentiment concerning the greenback is the single driver for the pair nowadays.
But the euro could experience an increased downside pressure in case the release of Fed’s June 12-13 meeting minutes policy demonstrates further predatory clues.
If the Federal Reserve sets a more cautious tone on the back of increasing trade tensions between the greenback and its trading partners, the dollar will be jeopardized. The baseline scenario suggests that the EUR/USD pair continues to lose ground till the end of this week, and challenge the 1.16 support once again.