EURUSD extended losses to fresh lows around 1.1725 on Tuesday
Wall Street stocks eased from record highs overnight, with energy shares declining as rising COVID-19 cases led to worries about oil demand. U.S. cases and hospitalizations climbed to a six-month high as the Delta variant spread. As a result, the S&P 500 and the Dow Jones shed 0.09% and 0.30% respectively while the Nasdaq Composite gained 0.16%.
Today in Asia, equities were mostly higher but gains were limited amid the persisting worries over the variants spreading rapidly in the region. As such, Japan’s benchmark Nikkei 225 gained 0.24%, Australia’s S&P/ASX 200 added 0.32%, the Shanghai Composite in China gained 1.01% and South Korea’s Kospi shed 0.53%.
European markets opened little changed on Tuesday as investors remain cautious. The pan-European Stoxx 600 climbed 0.3% in early trade. Besides, two Federal Reserve officials indicated that the pace of the U.S. recovery and elevated inflation could prompt starting interest rate hikes earlier than anticipated.
Hawkish hints from the Fed along with strong economic data sent the dollar higher across the board. As a result, EURUSD extended losses to fresh lows around 1.1725 on Tuesday. Now, the pair could threaten the 1.1700 handle, a break below which would add to a bearish technical picture.
Meanwhile, oil prices proceeded to recovery following the recent sell-off. Brent crude moved up by more than 2% to exceed the $70 psychological level in recent trading. It looks like buyers seek to build on a bounce of the support from the lows registered around $67.60 at the start of the week. Also, the prices managed to regain the 100-DMA but is yet to confirm the latest recovery on a daily closing basis.
