The euro is under negative pressure ahead of the main inflation data in Europe.

• The euro is approaching its lowest level in two weeks

• The U.S. dollar rises against a basket of global currencies

• The yield on U.S. Treasury bonds jumps to a 20‑month high

• Markets await decisive clues on the path of European interest rates

The euro fell in the European market on Tuesday against a basket of global currencies, resuming losses that had paused yesterday against the U.S. dollar and moving lower toward its lowest level in two weeks, amid the rise of the U.S. dollar thanks to soaring U.S. Treasury yields.

The U.S. dollar rose in the dollar index on Tuesday by 0.15%, resuming its decline that had paused in the previous session and approaching its highest level in two weeks, reversing the rise in the dollar against a basket of major and secondary currencies.

European interest rates

Reuters last week said the European Central Bank is preparing to raise interest rates at its next meeting in September to contain the spill‑over effects of the Iranian war, but it does not want to signal further monetary tightening thereafter.

Inflation in Europe and to reprice the probabilities of raising European interest rates again this year, investors later today await the release of the main European inflation data for August, which will show to what extent inflationary pressures are affecting the ECB’s monetary policy makers.

Expectations on euro performance are here on the “FX News Tody” site: If the inflation data come hotter than markets expect, the probability of raising European interest rates in September will rise, which will lead to a recovery in the euro’s exchange rate against a basket of global currencies.