EUR/USD is selling off after the release of more positive data from the US.
The data suggests the Federal Reserve could delay cutting interest rates, supporting USD.
The ECB continues to target June as the first month to cut interest rates.
EUR/USD falls to the lower 1.0700s on Tuesday after more strong US macroeconomic data supports the US Dollar (USD), pushing down the probability of the US Federal Reserve (Fed) cutting interest rates by June to close to 50%. The maintenance of higher interest rates is good for the USD as it attracts more capital inflows.
In Europe, slower growth and lower inflation mean rate-setters at the European Central Bank (ECB) are not as cautious about cutting interest rates to help stimulate the wheels of growth. This divergence of trajectories between both central banks is negative for EUR/USD.
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