EUR/USD nears 1.19 as dollar remains under pressure
- EUR/USD rose to 1.1897 in Asia and currently trades near 1.1885.
- The US-specific factors keep the greenback under pressure.
EUR/USD continues to grind higher amid broad-based losses in the US dollar. The pair is trading near 1.1885 at press time, having hit a high of 1.1897 during the Asian trading hours.
USD under pressure
The latest bout of dollar weakness is likely associated with the US-specific factors rather than the decline in safe-haven flows, according to Reuters analysts.
That could be the case as the greenback’s bounce fizzled out in the second half of last week after it became clear that Republicans and Democrats were miles away from approving the highly-anticipated fiscal stimulus deal.
And now the probability of the US Congress agreeing to a fiscal stimulus bill this month has declined further as both parties will be busy with their presidential name conventions over for the next two weeks,
As such, the dollar could extend the decline in the short-term, pushing EUR/USD above the recently hit 26-month high of 1.1916.
Additional bearish pressure may emanate from the lingering US-China tensions and election uncertainty. President Trump is now willing to give the Postal Service the money it needs to facilitate mail-in ballots on fears that mail-in voting will lead to fraud, according to CNN. The data docket is thin on Tuesday, which means the pair is at the mercy of the broader market sentiment.