Eur/usd Corrects Lower Amid Usd Strength on Eu-us Trade Deal Progress

The EUR/USD is correcting to around 1.1350 during Tuesday's European trading hours, retreating from the monthly high of 1.1425. The pair faces selling pressure as the US Dollar strengthens amid progress in US-EU trade negotiations. The US Dollar Index (DXY) has recovered its initial losses, rising 0.4% to around 99.35. EU officials have reportedly asked domestic business owners to submit investment plans in the US, signaling efforts to accelerate a trade proposal. European Trade Commissioner Maros Sefcovic affirmed the EU's commitment to progress towards a trade agreement, easing trade tensions. The US Dollar faced a sell-off due to shifting statements on tariff policies. President Trump initially proposed tariffs on EU imports but postponed them following discussions with European Commission President Ursula von der Leyen. The EUR/USD is correcting from its monthly high, trading near 1.1350, but its short-term outlook remains bullish, supported by the 20-day EMA around 1.1277.