EUR/USD Forecast: Tepid buying keeps defending the 1.0900 mark

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EUR/USD Forecast: Tepid buying keeps defending the 1.0900 mark
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The EUR/USD pair remains stuck on Tuesday, trading within a well-limited range around the 1.0920 mark since the day started.

EUR/USD Current price: 1.0942 The German ZEW survey on Economic Sentiment surprised with quite discouraging figures. The United States Producer Price Index rose by less than anticipated in July. EUR/USD trades with a modest bullish bias, needs to clearly surpass the 1.0950 resistance area. The absence of relevant data and upcoming first-tier United States first-tier headlines keeps investors in cautious mode, with little action across the FX board. Stock markets, however, tell a different story.

Across the pond, the US published the NFIB Business Optimism Index, which rose in July to 93.7, beating expectations. Finally, the US Producer Price Index rose 0.1% MoM in July as expected, while the annual increase was 2.2%, below the anticipated 2.3% and the previous 2.7%. Core annual inflation at wholesale levels eased from 3% in June to 2.4%. The encouraging figures put some pressure on the USD, with EUR/USD hovering around 1.0940 ahead of Wall Street’s opening.

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