Euro attempts rebound against greenback

The Euro (EUR) manages to regain some balance against the US Dollar (USD), encouraging EUR/USD to rebound from six-month lows around 1.0570 and trespassing the key barrier at 1.0600 the figure on Tuesday.

On the other hand, the Greenback sheds some ground after hitting new 2023 peaks in levels last traded in late November 2022 around 106.20 when measured by the US Dollar Index (DXY).

The pair's recovery comes in tandem with some corrective knee-jerk in US yields across different time frames, while the German 10-year bund yields also recede from earlier twelve-year peaks above 2.80%.

Looking at the macro scenario, the dollar’s sharp upside momentum remains propped up by expectations of the US Federal Reserve (Fed) view of keeping interest rates higher for longer. This stance was particularly exacerbated at the central bank's latest meeting on September 20.

As for the European Central Bank (ECB), recent board members found shared agreement towards a potential prolonged impasse in its hiking cycle despite the fact that inflation significantly exceeds the bank's target.

In the US docket, the Conference Board’s Consumer Confidence gauge will be in the limelight, along with New Home Sales, the FHFA’s House Price Index and the speech by FOMC’s permanent voter, Michelle Bowman (hawk).