EUR/USD slumps to lows near 1.0910

FXStreet (Edinburgh) - The single currency has now turned negative vs. the greenback, dragging EUR/USD to daily troughs in the 1.0915/10 band.

EUR/USD lower on Lockhart comments

The pair has reverted its initial positive tone after Atlanta Fed President Dennis Lockhart has advocated for a Fed’s lift off in September. After hitting tops near 1.0990 area, spot has rapidly shed gains and is currently testing the vicinity of 1.0920.

Lockhart has argued that the Federal Reserve is nearly ready to raise short term rates, while he suggested that September could be an ‘appropriate time’ for a rate hike. He also added that only a ‘significant deterioration’ of upcoming data could play against a rate hike.

EUR/USD key levels

As of writing the pair is retreating 0.32% at 1.0915 and a break below 1.0893 (low Jul.30) would open the door to 1.0869 (low Jul.22) and finally 1.0811 (low Jul.11). On the flip side, the initial up barrier aligns at 1.0990 (high Aug.4) followed by 1.1080 (high Jul.29) and then 1.1113 (high Jul.31).

GBP/CHF rises to 6-month highs

The pound is the best performer among European currencies on Tuesday, ahead of key economic events and reports. Against the Swiss franc it reached the strongest level since the Swiss National Bank abandoned the EUR/CHF floor.
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