EUR/USD has lost its traction and declined toward 1.0400 in the American session. This was after having climbed above 1.0460 earlier in the day.
US markets are closed due to the Independence holiday. The pair is therefore having a difficult time making a decisive move in either direction.
The EUR/USD pair is up on Monday after starting July on the backfoot. It currently trades at around 1.0450 after bottoming on Friday at 1.0364 following the release of discouraging European data. Inflation in the Union rose to 8.6% YoY in June, although the core reading ticked marginally lower, to 3.7% YoY.
Asian and European markets trade in the green at the start of a new week, putting some pressure on the greenback. US Stock and bond markets will be closed in observance of the Fourth of July holiday, which will most likely result in more dollar weakness with limited volatility. In the meantime, concerns about slowing economic growth and overheated inflation are still the main theme in the financial world.
Data-wise, figures coming from the EU were once again disappointing. According to report, the German Trade Balance posted a deficit of € 1 billion, while the EU Producer Price Index in the same month printed at 36.3% YoY.
This is slightly below expectations but still indicating outraging price pressures. A couple of European Central Bank officials will be on the wires later in the day.