FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%
HotForex information and reviews
HotForex
87%

EURUSD: markets await Powell's speech


27 August 2020

The euro closed slightly in the red on Wednesday, August 26, dropping 0.04%, to 1.1830 against the dollar. After the release of favorable durable goods orders stateside, the EURUSD pair dropped to 1.1772. However, US macro data and rising 10-year US government bond yields failed to lend support to the dollar. Exchange rates reversed sharply higher, paring all earlier losses. The price stabilized at 1.1840.

In addition, the situation was impacted by news that EU negotiators rejected talks next week on post-Brexit relations between the UK and the EU. The Brexit issue was removed from the agenda due to the lack of progress in the negotiations.


Today’s macro agenda (GMT+3)  

Current outlook


Yesterday’s price action was in line with our base case scenario, albeit with minor deviations. At the time of writing, the euro stood at 1.1822. Traders await today’s key speech by Fed Chairman Jerome Powell. Investors will be on the lookout for clues about further stimulus from the Fed.

Also in the spotlight is Hurricane Laura, which recently made landfall on the US Gulf Coast. The hurricane is currently a major Category 4/5 storm. Its speed has dropped from 240 kph to 225 kph. This event is relevant for commodity currencies and oil.

Aside from Jerome Powell's speech and the hurricane, traders are concerned about a possible downward revision of 2Q US GDP. The GDP report will come out during the North American session. The second estimate tends to exert less of an impact on the market, but if the value is revised sharply downward/upward, price fluctuations will be strong.

Bullish momentum appears to be fading. The current market environment situation is somewhat reminiscent of the rebounds and the subsequent moves we saw on August 14 (rebound from 1.1782) and August 20 (rebound from 1.1802).

The size of the current candle is small with a long lower shadow. The candlestick pattern is bullish, but it does not always shape up when needed. We still expect to see the key pair test the 1.1860 level, after which the euro can be expected to weaken.

#source

Share:


Related

US Dollar Index adds to recent losses and retests 95.40 ahead of data
US Dollar Index adds to recent losses and retests 95.40 ahead of data

DXY extends the decline to the 95.40 region on Thursday. US yields correct further lower from recent tops. Initial Claims, the Philly Fed Index are next in the US docket...

21 Jan 2022

EURUSD decided to wait
EURUSD decided to wait

EURUSD stopped growing; the statistics failed the "greenback". The major currency pair is rather neutral early in the week. The current quote for the instrument is 1.1426...

17 Jan 2022

The Euro skyrocketed to its 8-week highs
The Euro skyrocketed to its 8-week highs

EURUSD continued rising after the US reported on inflation. The major currency pair continues growing on Thursday. The current quote for the instrument is 1.1468...

14 Jan 2022

US Dollar Index appears supported near 95.50
US Dollar Index appears supported near 95.50

DXY looks depressed around the mid-95.00s midweek. US 10y yields remain capped by the 1.80% area. Inflation figures tracked by the CPI next of note in the docket...

12 Jan 2022

EUR/USD Keep Falling
EUR/USD Keep Falling

The major currency pair is falling after demonstrating some growth last week. The asset is mostly trading at 1.1330. Market players are still processing the FOMC Meeting...

11 Jan 2022

Hot inflation in eurozone could rescue the euro from strong NFP
Hot inflation in eurozone could rescue the euro from strong NFP

EUR/USD seems to have steadied around 1.1300 ahead of key data releases. According to FXStreet’s Eren Sengezer, the shared currency could find demand on a hot inflation report...

7 Jan 2022


XM information and reviews
XM
86%
FXCM information and reviews
FXCM
85%
AvaTrade information and reviews
AvaTrade
84%
LegacyFX information and reviews
LegacyFX
83%
FP Markets information and reviews
FP Markets
82%
Pepperstone information and reviews
Pepperstone
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.