- The dollar gains momentum again after Tuesday’s fall.
- US: Report durable goods orders with mixed signals.
- EUR/USD remains under pressure, unable to sustain recovery.
EUR/USD continued to pull back and posted fresh daily lows at 0.9912, close to Tuesday’s low in decades at 0.9898. After the publication of US economic data, the pair did not register major changes.
The US July Durable Goods Orders report showed a stall in July against expectations of a 0.6% rise, but the details turned out positive: upward revisions to June figures and indicators positive and above expectations without taking aviation and defense into account.
After the report, the dollar remained in positive territory against most of its rivals. DXY rises 0.40% and trades just below 109.00. Treasury bond yields rose. At 14:00 GMT the Existing Home Sales Report will be published.
Thursday will kick off the Jackson Hole symposium, which includes an exhibit by Jerome Powell on Friday. The words could have a broad impact on the dollar and the markets.
The dollar continues to be supported by the expectation of further increases in interest rates by the Federal Reserve and also due to the cautious climate in the equity markets. Tuesday’s S&P Global PMI data from Europe and the US contributed to a complicated outlook for economic growth.
The EUR/USD remains weak and with the downtrend intact. The recovery was short-lived. The return below the parity level ratifies the negative moment. Support to break is seen at the 0.9900 area and next support at 0.9860. To the upside a return above 1.0030 could ease bearish pressures.
Technical levels
Source: Fx Street
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