EUR/USD is trading slightly lower on Tuesday (6/10). The pair has dropped to just below 1.1400 at the time of writing, still within the range of the past few days, with investors reluctant to place any major directional bets as US and Chinese representatives continue to discuss trade issues.

Positive statements from some officials, namely US President Donald Trump's assertion that he got a "good report" from the meeting, have helped keep market sentiment buoyant and have provided some support to the US Dollar (USD).

However, traders are likely to remain on the sidelines, waiting for news of concrete progress. The world's two largest economies have entered the meeting with a constructive attitude, aiming to revive the spirit of last month's summit in Switzerland, which led to a significant reduction in their mutual tariffs.

This time, however, thorny issues such as rare earth trade, restrictions on chip exports, or student visas will force both sides to make sacrifices if they are to reach a deal. And that may take time.

In the Eurozone, the Sentix Investor Confidence Index has shown a significant improvement in June, with the indicator jumping to a positive level for the first time in a year. In addition, the ECB's Olli Rehn and Francoise de Villeroy have reinforced the bank's recent aggressive stance, and Italian Industrial Output increased more than expected. Overall, the figures are supportive of the Euro. (alg)

Source: FXstreet