- The dollar loses momentum due to risk appetite.
- Market participants turn their attention to Jackson Hole.
- EUR/USD fails to recapture 1.0000, hovers near 20-year lows.
The pair EUR/USD rose from the daily low of 0.9907 to 0.9998 in a few minutes, thanks to the general decline in the US dollar. The euro was unable to sustain the gains and pulled back to the 0.9950 area.
The USD weakened even as US yields held at daily highs. Improved risk sentiment weighed on the dollar. The Dow Jones rose 0.37% and the Nasdaq gained 0.80%. DXY posted a new daily low at 108.36 and at time of writing hovered around 108.70, up 0.22% on the day.
Data released on Wednesday showed durable goods orders rose 0% in July, versus expectations for a 0.6% rise, and pending home sales fell 1%, less than expected. The figures did not have a significant impact on the market, which is turning its attention to the Jackson Hole symposium.
Fed Chairman Powell will deliver his speech on Friday. “While some may be looking for an explicit policy signal, we believe the Fed will leave all options open for the September 20-2 FOMC meeting. However, we expect Chairman Powell and his colleagues to maintain a very aggressive tone in the symposium”. We also give an overview of current economic conditions in the United States, explain analysts at Brown Brothers Harriman.
EUR/USD remains under pressure, unable to sustain a recovery. A retest of 0.9900 in the coming sessions should not be ruled out. A break down could trigger more losses, with the next support around 0.9860. A firm break above 1.0000 could relieve bearish pressure, especially if the Euro manages to reclaim 1.0030.
Technical levels
Source: Fx Street
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