• EUR/USD edges higher after bouncing off six-week low with the biggest daily gains in a fortnight.
• Euro bears run out of steam despite downbeat German data, 15-year high US Treasury bond yields.
• Market braces for this week’s top-tier US data, Jackson Hole speeches amid light calendar.
• Fed talks, second-tier US data can direct intraday moves ahead of PMI, Durable Goods.

EUR/USD holds onto the week-start corrective bounce while edging higher to 1.0900 amid Tuesday’s Asian session as the US Dollar fails to cheer upbeat yields and expectations of higher wages.

Euro rose the most in two weeks the previous day while extending the late Friday’s rebound from the lowest level since early July as the US Dollar Index (DXY) dropped despite the 15-year high US Treasury bond yields. In doing so, the major currency pair also ignored downbeat German Producer Price Index (PPI) data and the recently upbeat expectations of witnessing higher wages in the US. The reason could be linked to the market’s anxiety ahead of this week’s top-tier central bankers’ speeches at the Jackson Hole Symposium.

On Monday, German Producer Price Index (PPI) for July dropped to -1.1% MoM and -6.0% YoY from -0.3% prior and 0.1% YoY respectively priors. Following the data, Germany’s Bundesbank released its monthly report stating that the inflation could persist above the central bank’s target for longer while the German growth may remain flat in the third quarter (Q3) of 2023.

Recently, the Federal Reserve Bank of New York's unveiled its SCE Labor Market Survey results suggesting record wage expectations. “The Lowest wage respondents would be willing to accept for a new job jumped to a record high of $78,645 in July, up from $72.873 a year ago,” said the findings.

Amid these plays, Wall Street closed mixed but the US 10-year Treasury bond yields rose to the highest level since 2007, to around 4.354% before ending Monday’s trading day near 4.34%.

Apart from the pre-Jackson Hole consolidation, the EUR/USD traders should have also justified China’s efforts to defend the post-COVID economic recovery via a slew of stimulus measures, as well as the receding recession fears in the bloc.

Looking forward, the US Existing Home Sales for July and Richmond Fed Manufacturing Index for August will join speeches from the mid-ties Federal Reserve (Fed) officials, not to forget the Eurozone Current Account for June, to entertain EUR/USD traders. However, major attention will be given to Friday’s Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium amid indecision about the US central bank's next moves