EUR/USD extended its decline and approached 1.0710 before recovering modestly. Commerzbank economists believe that the pair is unlikely to reach lower levels.
Powell likely to be a hardliner again
“At present, there is little reason for the Fed to deviate from its current stance. Therefore, Central Bank Governor Jay Powell is likely to sound hardline again today at the Economic Club of Washington, thus possibly providing a bit more support for the USD.”
“With the market maintaining its rate cut expectations for the Fed and the ECB likely to sound aggressive as well, the scope for lower levels in EUR/USD is limited. – unless, of course, there are new (positive) economic surprises. However, no major data will be released this week.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.