EUR/USD set to eventually slide below the 1.17 level – Westpac
|The EUR/USD pair is finding support around 1.17 but an expanding growth and policy divergence with the US leaves risks of a multi-week break below the mentioned level intact, economists at Westpac report.
See – EUR/USD: Defending 1.1700 is key to see a rebound towards 1.1835 – SocGen
EUR/USD could rebound toward 1.1800-1.1850 in the week ahead
“The steadier July US CPI has alleviated immediate downside pressure on EUR/USD, but an expanding growth and policy divergence with the US, even as the US battles a larger Delta covid wave, leaves risks of a multi-week break below 1.1700 intact.”
“Fed tapering is coming into view in the next several months, while ECB could well announce an extension of pandemic asset purchases beyond September, in line with the Bank’s recent dovish strategic review.”
“EUR/USD could see upside toward 1.1800-1.1850 in the week ahead but seems set to eventually probe new lows in coming weeks as Fed tapering comes into view.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.