- 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
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.