EUR/USD STAYS VIGILANT ABOVE 1.0200 AHEAD OF US DATA

• EUR/USD alternates gains with losses above 1.0200.
• Investors look cautious ahead of key US data and the Fed event.
• US Conference Board’s Consumer Confidence takes centre stage later.

EUR/USD exchanges ups and downs above the 1.0200 mark on Tuesday amidst the broad-based consolidative mood in the global markets.

EUR/USD FOCUSED ON THE US CALENDAR

EUR/USD gyrates in the low-1.0200s as a clear direction in the markets remains absent in the first half of the week, while cautiousness remains on the rise among market participants in light of the upcoming Fed event.

In the meantime, threats of further deterioration of the energy scenario, particularly regarding the supply of Russian gas to Germany (via the Nord Stream 1 pipeline), keeps undermining the growth outlook in the country and the region as a whole and could eventually be a source of extra weakness for the single currency in the upcoming months.

On the political side, the euro is predicted to face further headwinds, as the far-right party Fratelli d’Italia (Brothers of Italy) keeps leading the race to the general elections in Italy on September 25.