EUR/USD has posted gains in the Tuesday session. Currently, the pair is trading at 1.1515, up 0.29% on the day. There are no eurozone or U.S events on the schedule. On Wednesday, the U.S releases Existing Homes and the Federal Reserve will publish the minutes of the July policy meeting.
The euro has declined more than 2% in August, but is enjoying a mini-rally. EUR/USD has posted gains over four straight days, as the strong U.S dollar has given up some ground to its major rivals. The euro has pushed above the 1.15 line on Tuesday, for the first time since August 10. Investor risk appetite is higher, on the news that the U.S and China are holding trade talks later in the week. The U.S is unhappy with the Chinese protection of local markets and technology transfers required in order for U.S businesses to operate in China, but it’s questionable if the Chinese will show much flexibility. Both sides have slapped tariffs of $34 billion on each other’s products, with another $16 billion in tariffs scheduled for August 23. If the negotiations lead to the suspension of the upcoming tariffs, risk appetite would rise and the euro could gain ground. However, the talks involve low-level officials, so the meetings are unlikely to result in a breakthrough in the US-China trade spat.
