• EUR/USD remains sidelined after a volatile day that ended near the opening price.
  • US dollar bulls relinquished controls after mixed US data helped equities to print mild gains.
  • DXY printed small gains despite strong yields amid anxiety ahead of central bankers’ speeches at the Jackson Hole.
  • The second readings of German/US GDP, Germany’s IFO Sentiment figures and US Core PCE data could also entertain traders.

EUR/USD steadies around 0.9970 while fading the bounce off 0.9910, as well as cooling down the retreat from 0.9998, amid traders’ anxiety ahead of the Jackson Hole symposium speech from Fed Chair Jerome Powell. The major currency pair also struggled for clear directions after mixed US data and a lack of major comments from the ECB/Fed policymakers.

US Dollar Index (DXY) began Wednesday on a firmer footing before retreating towards 108.50 as equities pared recent losses amid a lack of too-strong US data. Also exerting downside pressure on the greenback’s gauge versus the six major currencies was the indecision among the latest Fedspeak and market chatters that Fed Chair Powell may repeat his economic fears and may refrain from too hawkish comments at the Jackson Hole Symposium.

Talking about the US data, Durable Goods Order for July dropped to 0.0% versus 0.6% expected and an upwardly revised 2.2% previous reading. However, Nondefense Capital Goods Orders ex Aircraft rose past 0.3% market consensus to 0.4%, versus 0.9% prior. Further, Pending Home Sales improved to -1.0% MoM in July versus -4.0% expected and -8.9% prior (revised down from -8.6%). On a yearly basis, the Pending Home Sales decreased by 19.9%, versus the previous contraction of 20.0%.

It should be noted that Minneapolis Fed President Neel Kashkari mentioned that the biggest fear is that we are misreading underlying inflation dynamics, per Reuters. The policymaker also added that the Fed can relax on rate hikes when compelling evidence of CPI heading toward 2% is seen.

On the other hand, an influential economist Marcel Fratzscher of the German Institute for Economic Research mentioned, per Reuters, “The economic impact on Germany of Russia's invasion of Ukraine will last years.”

Elsewhere, Sara Johnson, Executive Director of Economic Research at S&P Global Market Intelligence, said in a statement on Wednesday, that global growth is likely to remain subdued in late 2022 and 2023 while inflation is seen moderating over the next two years.

Amid these plays, the US 10-year Treasury yields rose the most in a week while refreshing a two-month high around 3.10% whereas the Wall Street benchmarks printed mild gains.

Moving on, Final readings of Germany’s second quarter (Q2) GDP and the second version of the US Q2 GDP will join the US Personal Consumption Expenditure (PCE) for the said period to decorate the calendar. Also important to watch will be the monthly prints of Germany’s IFO sentiment figures. However, major attention will be given to Jackson Hole for fresh impulse.

Technical analysis

Doji candlestick at the multi-year low joins nearly oversold RSI to suggest that the EUR/USD bears are running out of fuel.

Additional important levels

Overview
Today last price 0.9969
Today Daily Change 0.0000
Today Daily Change % 0.00%
Today daily open 0.9969
 
Trends
Daily SMA20 1.0173
Daily SMA50 1.0258
Daily SMA100 1.0458
Daily SMA200 1.0848
 
Levels
Previous Daily High 1.0018
Previous Daily Low 0.9901
Previous Weekly High 1.0268
Previous Weekly Low 1.0032
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci 38.2% 0.9973
Daily Fibonacci 61.8% 0.9946
Daily Pivot Point S1 0.9907
Daily Pivot Point S2 0.9845
Daily Pivot Point S3 0.9789
Daily Pivot Point R1 1.0025
Daily Pivot Point R2 1.008
Daily Pivot Point R3 1.0142

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD preserves its recovery momentum and trades near 1.0500 in the European session. Despite the risk-averse market atmosphere, the US Dollar is struggling to find demand ahead of mid-tier data releases, helping the pair hold in positive territory.

EUR/USD News

GBP/USD clings to recovery gains above 1.2150

GBP/USD clings to recovery gains above 1.2150

GBP/USD gained traction and climbed above 1.2150 during the European trading hours. The modest US Dollar weakness provides a boost to the pair as the market focus shifts to third-quarter Unit Labor Costs data from the United States.

GBPUSD News

Gold price struggles to gain traction, holds above $1,770

Gold price struggles to gain traction, holds above $1,770

Gold price is having a difficult time gathering bullish momentum and continuing to fluctuate in a tight range slightly above $1,770. The benchmark 10-year US Treasury bond yield holds steady above 3.5% ahead of US data, not allowing XAU/USD to find direction.

Gold News

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan will work alongside Al Fardan Exchange LLC in the United Arab Emirates (UAE) to power faster transaction settlement and transfers in fiat currencies.

Read more

Are global rate markets too complacent about central bank intentions for 2023?

Are global rate markets too complacent about central bank intentions for 2023?

Markets and economists are split between a 25 bps and a 50 bps rate hike (bringing the key rate to 4% or 4.25%) but are eager to hear about the Bank of Canada’s future guidance.

Read more

Forex MAJORS

Cryptocurrencies

Signatures