Risk aversion weighs on T-bond yields. US Dollar Index drops to fresh 10-day low below 94. The German economy is losing momentum. After dropping down to 1.1628 following the disappointing data from Germany, the EUR/USD reversed its course and advanced to its best level since May 14 at 1.1702. As of writing, the pair was trading at 1.1697, adding 25 pips, or 0.38%, on the day. Commenting on today’s report, which showed that current assessment and business climate indexes both eased from their May levels, IFO economist Klaus Wohlrabe said that findings suggested that the economic boom in Germany was over and added that the concerns over the trade conflict with the United States and the weakness surrounding the global economy weighed on the confidence. In the second half of the day, according to the data released by the Federal Reserve Bank of Chicago, the economic activity slowed down in May. A separate report revealed that new home sales increased by 6.7% in May. Nonetheless, the market didn’t show a noticeable reaction to the data as investors remained focused on the political developments in the United States. On Sunday, a report published in the Wall Street Journal claimed that a government official said the Treasury Department was planning to stop firms with at least a 25% Chinese ownership from buying technology firms in the U.S. Later in the day, Treasury Secretary Steven Mnuchin explained that this move would not be specific to China but would apply to all the countries that were looking to steal their technology. The flight-to-safety ramped up the demand for traditional safe-havens such as the Treasury Bonds and dragged their yields lower and pressured the buck. At the moment, the 10-year reference was down 0.7% on the day and the DXY was losing 0.22% at 93.98. Meanwhile, the tech-heavy Nasdaq Composite Index is was dropping 2.25%. There won’t be any macroeconomic data releases from the euro area on Tuesday, and the USD valuation is likely to drive the pair’s price action. Technical levels to consider The pair could face the first technical resistance at 1.1745 (Jun. 4 high) ahead of 1.1800/05 (psychological level/Jun. 13 high) and 1.1850 (Jun. 4 high). On the downside, supports are located at 1.1680 (20-DMA), 1.1600 (psychological level/Jun. 22 low) and 1.1510 (Jun. 21 low). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next World trade grows in April, data shows signs of momentum slowing – ING FX Street 5 years Risk aversion weighs on T-bond yields. US Dollar Index drops to fresh 10-day low below 94. The German economy is losing momentum. After dropping down to 1.1628 following the disappointing data from Germany, the EUR/USD reversed its course and advanced to its best level since May 14 at 1.1702. As of writing, the pair was trading at 1.1697, adding 25 pips, or 0.38%, on the day. Commenting on today's report, which showed that current assessment and business climate indexes both eased from their May levels, IFO economist Klaus Wohlrabe said that findings suggested that the economic boom in Germany was… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.