EUR/USD declines towards 1.0000 on expectation of hawkish guidance by Fed in Jackson Hole
|- EUR/USD is declining towards the magical figure of 1.0000 ahead of Jackson Hole Symposium.
- Fed Powell may sound hawkish as the road to price stability is far from over.
- An expectation of a decline in the US Durable Goods Orders may restrict the DXY bulls.
The EUR/USD pair has continued its two-day losing streak after dropping below Friday’s low at 1.0032 in its opening session. The asset is declining towards parity as investors expect hawkish guidance from the Federal Reserve (Fed) at US Jackson Hole Symposium this week.
Earlier, the asset witnessed a steep fall after slipping below the critical support of 1.0122 as the release of the Fed minutes dictated the expectation of more rate hike announcements this year. However, the pace of the rate hike is likely to slow down to dodge the consequences of squeezing liquidity dramatically from the economy.
Price pressures have trimmed the US economy with a meaningful impact. However, the vision of achieving price stability by attaining 2% annual inflation is still far from over. Therefore, hawkish guidance is highly expected from Fed chair Jerome Powell this week.
Apart from the US Jackson Hole Symposium, investors will also focus on the US Durable Goods Orders data, which will release on Wednesday. The economic data is seen lower at 0.6% from the prior release of 2%. When the US economy has already displayed an unchanged US core Consumer Price Index (CPI), a decline in the economic data is not lucrative for the US dollar index (DXY).
On the eurozone front, investors are awaiting the release of the Eurozone Consumer Confidence, due on Tuesday. A preliminary estimate for the economic data is -28, lower than the prior release of -27. A further trim in consumer confidence may keep the eurozone bulls on tenterhooks.
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