EUR/USD posted modest gains during the North American session as the US dollar erased some of its earlier gains, following US President Donald Trump's demand for the Federal Reserve to cut interest rates, as he pushed back the July 9 deadline to August 1. At the time of writing, the pair was trading at 1.1724, up 0.14%.

Risk appetite soured late in the day, amid uncertainty over trade policy. US Commerce Secretary Howard Lutnick said he expected 15-20 more letters to be sent in the next few days, according to an interview with CNBC. Meanwhile, Trump's threat to expand tariffs on pharmaceuticals, semiconductors and copper weighed on investor sentiment.

On the data front, US economic data showed that small business confidence declined slightly, according to a survey by the National Federation of Independent Businesses (NFIB).

The common currency halted losses on Monday as the White House did not target the European Union (EU) with additional tariffs. Recently, Trump acknowledged that negotiations between the US and Europe are ongoing, adding that the EU has been "very good" to the US.

Meanwhile, US economic data has yet to be released, with traders awaiting the release of the minutes of the June Federal Open Market Committee (FOMC) meeting. In the EU, several officials from the European Central Bank (ECB) will deliver statements, led by Vice President Luis de Guindos, Chief Economist Philip Lane, and Joachim Nagel. (alg)

Source: FXstreet