During the European trading session, the US dollar advanced against other majors,
having recouped its recent losses.
On Tuesday the American currency weakened amid downbeat macroeconomic statistics from the US.
Besides, the bearish pressure intensified as the US Democratic Party
that controls the House of Representatives announced a formal impeachment inquiry of Trump.
Though the US dollar has managed to come off lows,
most analysts believe that the political news will exert pressure on the American currency.
At the same time, the single European currency also lacks momentum, hitting new session’s lows.
The euro-dollar pair approached the area of 1.0990.
The nearest support can be found at 1.0970-1.0965.
Breaking it, the pair may fall to this year’s lowest level at 1.0920.
Meanwhile, the United States is again contemplating introducing tariffs on the exports from Europe.
Washington plans to distribute the levies
among different categories of goods in such a way
that would exert considerable pressure on the European Union amid the lingering dispute about EU subsidies for Airbus.
The euro was weighed down by this news.
Additionally, Trump sharply criticized China during his speech at the United Nations summit.
It also dampened the market sentiment.
The pound sterling was also trading lower
today in European deals.
The GBP/USD pair hit new lows near 1.2435.
Having reversed the bullish trend, the pair
declined from highs that were reached on Tuesday
after the Supreme Court had recognized the
government shutdown as illegal.
Besides, the British currency weakened amid
the political uncertainty in the country and
the stronger US dollar that had gained ground
thanks to a rise in the US Treasuries yields.
It is unclear whether the pound will attract
sellers at lows or a rise from the multi-year
lows below 1.20 has come to an end.
Later in the day, market participants will
be focusing on the speeches of ECB policy
maker Benoit Coeuré and Fed officials Charles
Evans and Esther George.