EUR/USD retreats to 1.1750 area as DXY looks to snap four-day losing streak
- EUR/USD remains on track to close in the negative territory.
- US Dollar Index holds above 93.00 on Thursday.
- Focus shifts to FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium.
After rising to 1.1780 area during the European trading hours, the EUR/USD pair lost its traction and now looks to end the day in the negative territory. As of writing, the pair was down 0.15% on the day at 1.1753.
Renewed USD strength weighs on EUR/USD
Earlier in the day, the European Central Bank's Meeting Accounts showed that policymakers debated forward guidance on interest rates while revealing that the pace of bond purchases would be reviewed at the September meeting. Commenting on the publication, "the ECB’s continued support will limit the upside for bond yields, and given that the Fed is set to proceed faster in removing exceptional stimulus, we see plenty more downside for the EUR/USD," said Nordea economists.
On the other hand, the USD is outperforming its rivals as investors count down FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium on Friday. Currently, the US Dollar Index is up 0.25% on a daily basis at 93.05. Ahead of that highly-anticipated event, the Personal Consumption Expenditures (PCE) Price Index data from the US will be looked upon for fresh impetus.
Fed Chair Powell’s Jackson Hole Speech: Caution will win out.
Earlier in the day, the US Bureau of Economic Analysis announced that the second-quarter GDP growth got revised higher to 6.6% on a yearly basis from 6.5% previously. Additionally, the weekly data published by the US Department of Labor showed that the Initial Jobless Claims rose by 4,000 to 353,000 in the week ending August 21.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
