- EUR/USD sideways below 1.0000.
- The Dollar Index rises marginally, with no clear direction in the markets.
- US data is coming: retail sales and jobless claims.
EUR/USD is trading within a range between 0.9950 and 1.0000 on previous US economic data. After reaching 1.0000, the euro changed direction and trades at 0.9970. Some stability throughout the financial markets favors the sideways movements of the pair.
Latest data before the Fed
The official of the European Central Bank, Gabriel Maklouf affirmed on Thursday that it is absolutely necessary to raise interest rates. While the vice president of the ECB, Luis de Guindos warned that they are facing a difficult scenario. The statements are in line with what is expected ahead: higher rates even despite the economic slowdown.
In the market, more increases by the ECB are discounted, although at this time the focus is on the Federal Reserve, that next Wednesday he will annul his decision. After the inflation data for August, expectations of a rise of 75 basis points were firm, and there are even those who warn of the possibility of a rise of 100 basis points.
The data to be released on Thursday, which includes retail sales and jobless claims, are among the last before the FOMC meeting. Before these reports, Treasury bond yields are stable in the area of ​​maximums in months and years. The calm is also moving to the equity markets and the dollar.
The dollar index is up 0.08% and is at 109.75. Stability favors EUR/USD range riding, which remains sideways between 0.9950 and 1,000. Break below 0.9950 would expose next support at 0.9910 and then 0.9900 and 0.9875 follow, before long-term support at 0.9875. On the upside, if it settles above 1.0000, it could go looking for 1.0045/50, where the simple moving average of 20 in four hours is, and if it is broken, it would support the euro for further increases.
Technical levels
Source: Fx Street
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