EUR/USD maintains bids above 1.0250 despite cautious sentiment
Amid lackluster market circumstances, EUR/USD is finding buyers. Ahead of the Fed's minutes, investors become wary amidst US-Chinese tensions and ahead of the release of the Fed's minutes. The European energy crisis worsens as the Rhine dries up in Germany. The EUR/USD is moving higher above 1.0250 as gloomy market sentiment and sluggish US Treasury rates help buyers.

Investors seek safety in government bonds and the dollar in the face of rising US-China dangers after the US dispatched a delegation to Taiwan over the weekend, despite House Speaker Nancy Pelosi's controversial trip to the disputed island, which incensed Beijing.
Moreover, increased prospects of a 50 basis point (bps) Fed rate hike in September, after softening US inflation pressures, weigh heavily on rates, with all eyes on Wednesday's FOMC minutes for fresh insights on the policy path of the most powerful central bank in the world.
In early Asian trades, the US dollar is holding strong despite a drop in rates and a lackluster desire for riskier assets. The US dollar index is trading unchanged at 105.61, after rebounding to 105.88 on Friday. Stronger US Michigan Consumer Sentiment data and a lessening US inflation outlook spurred a significant dollar rise, despite Wall Street's excellent performance.
On the EUR side of the equation, the gains in the shared currency are likely to stay modest as the European energy crisis worsens. Already, a reduction in Russian gas shipments is having a devastating effect on the old continent, with Germany suffering the most. The German economy could enter a recession as a result of the Rhine's ebbing waters, which make shipping along the river more difficult.
The reference level was expected to fall below 40 centimeters by the end of the week in Kaub, a notorious shipping bottleneck where the Rhine runs narrow and shallow. Coal is among the most important commodities transported on the waterway.
Monday's economic calendar on both sides of the Atlantic is relatively light on high-profile data releases. Consequently, the prevailing market sentiment and dollar price action will continue to have a bearing on the primary currency pair.
Bonus rebate to help investors grow in the trading world!