EUR/USD remains under pressure after short-lived rebound
- US dollar loses momentum on risk appetite.
- Market participants turn attention to Jackson Hole.
- EUR/USD unable to recover 1.0000, holds near 20-year lows.
The EUR/USD rose from the daily low at 0.9907 to 0.9998 in a few minutes around the London fix, on the back of a broad-based slide of the US dollar. The euro failed to hold to gains and pulled back to the 0.9950 area.
The greenback weakened even as US yields held at daily highs. The improvement in risk sentiment weighed on the dollar. The Dow Jones is up by 0.37% and the Nasdaq gains 0.80%. The DXY printed a fresh , daily low at 108.36 and, as of writing, it is hovering around 108.70, up 0.22% for the day.
Data released on Wednesday showed Durable Goods Orders stood flat in July against expectations of a 0.6% rise and Pending Home Sales declined 1%, less-than-expected. The numbers did not have a significant impact on markets that are turning their attention to the Jackson Hole symposium.
Fed Chair Powell will deliver his speech on Friday. “While some may be looking for an explicit policy signal, we believe the Fed will leave all options open for the September 20-2 FOMC meeting. However, we expect Chair Powell and his colleagues to maintain a very hawkish tone at the symposium. We also give an overview of current U.S. economic conditions,” explained analysts at Brown Brothers Harriman.
The EUR/USD remains under pressure, unable to sustain a recovery. Another test of 0.9900 over the next sessions should not be ruled out. A break lower could trigger more losses, with the next support seen around 0.9860. A firm break above 1.0000 could alleviate the bearish pressure, particularly if the euro manages to recover 1.0030.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
