- US dollar moving sideways on Thursday, DXY post marginal losses.
- Market participants await Powell’s speech on Friday.
- EUR/USD rejected from above 1.0000, supported by 0.9950.
The EUR/USD is moving without a clear direction on Thursday ahead of a key speech from Jerome Powell at the Jackson Hole Symposium. The pair failed to hold above parity and then pulled back, finding support above 0.9950.
The US dollar gained momentum following the release of US economic data. The Q2 GDP growth rate was revised higher from -0.9% to -0.6% and jobless claims declined more than expected. US yields peaked after the reports and then retreated.
Aside from the numbers, market participants await Powell’s speech to be delivered on Friday. His words could bring clarity regarding the path of the Fed’s monetary policy. “We expect Powell to try and manage market expectations by maintaining the Fed’s hawkish tone. Between now and the September 20-21 FOMC meeting, we will get all the major August data and some of the early September surveys such as the preliminary S&P Global PMI readings and regional Fed surveys. The Fed will also have a better idea then of how the economy is doing in Q3,” explained analysts at Brown Brothers Harriman.
Regarding the European Central Bank, the minutes from the latest meeting showed a “large number” of members agreed it was appropriate to raise interest rates by 50 basis points. “The ECB is now fully in a data-dependent mode with chains from past guidance severed. Most Governing Council members are preoccupied with inflation risks, and large rate hikes are set to continue,” said Jan von Gerich, Chief Analyst at Nordea.
Unable to recover 1.0000
The EUR/USD shows no clear signs in the very short term. The euro continues to show weakness by being unable to hold above 1.0000. A recovery surpassing 1.0030 would add support to the shared currency. On the flip side, the immediate support stands at 0.9950. A slide below would expose the next barrier around 0.9900.
The main trend in EUR/USD remains bearish and the euro still looks vulnerable. It is on its way to the second weekly slide in a row and the lowest close since November 2002.
Technical levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD battles 1.2300 ahead of BoE interest rate decision
GBP/USD is battling 1.2300, refreshing a five-month low.in European trading on Thursday. The pair is weighed by the Fed's hawkish stance and increased odds of a BoE rate hike pause, following a surprise fall in UK inflation and SNB's unexpected rates-on-hold decision.
EUR/USD keeps losses near 1.0650 amid US Dollar strength
EUR/USD is consolidating losses near 1.0650 in the European trading hours on Thursday. The Fed, as expected, kept rates unchanged but indicated that one more rate hike before the year-end could be appropriate. US yields sit at multi-year highs, underpinning the US Dollar.
Gold tests key support near $1,925, focus on US data
Gold price is holding lower ground near $1,925 in the European session on Thursday. Investors seem to shift their focus on upcoming US data after the US Federal Reserve's hawkish hold on Wednesday triggered a fresh US Dollar rally.
XRP price tests the $0.51 support zone while CEO Brad Garlinghouse critiques the SEC and Chair Gensler
XRP price outlook is bullish as the asset tests the supply zone at $0.5174. Pro-XRP attorney John Deaton shared his views on the likelihood of a settlement by the SEC in its lawsuit against Ripple.
BoE Interest Rate Decision: Cooling UK inflation raises doubts over another hike
The UK central bank is on track for another 25 bps hike on Thursday, lifting interest rate to 5.50%. The Bank of England could signal the end of its tightening cycle. Pound Sterling set to rock after surprise fall in UK inflation raises odds of a BoE rate hike pause.