EUR/USD consolidates the Asian spike to 1780, Catalan crisis in focus

The EUR/USD pair stands resilient so far this Tuesday, despite the looming concerns over the Spanish political climate, with all eyes set on the Catalan President Carles Puigdemont's speech due later today.

EUR/USD: 1.1800 still on sight

The EUR bulls are seen gathering pace for a test of 1.18 handle, as the bearish sentiment around the US dollar continues to keep the buoyant tone intact in EUR/USD. The greenback remains broadly under pressure, as Treasury yields lack vigour ahead of the release of the FOMC Sept meeting minutes.

Moreover, revival of geopolitical tensions between the US and North Korea, after an overnight news reported that North Korea accused US of assassination attempt of Kim Jong-un in May, also fuelled fresh USD selling across its main competitors.

However, further upside in the spot remains contingent on the decision of the Catalan leader Puigdemont’s, as he is expected to announce Catalonia’s independence during his speech due out later in the day ahead.

Meanwhile, markets digest the solid German trade figures amid a lack of significant fundamental drivers from both continents, and hence, FOMC member Kashkari’s speech will be closely eyes for fresh hints on the US interest rates outlook.

EUR/USD Technical View

Jim Langlands at FX Charts offers the preferred strategy for EUR/USD: “It is all rather neutral at the start of Tuesday trade so a nimble stance is required. The dailies do still point lower although they need to see some directional move soon as they will otherwise run out of steam and then further choppy trade could be in store.”