- The euro gains momentum in the market on Friday.
- The dollar loses strength in the run-up to Powell’s speech.
- EUR/USD recovers again from 0.9950.
The EUR/USD recovered from two-day lows below 1.0000, and rose to 1.0023, the new high. The pair remains in the high zone, with the tone bullish, in the anticipation of Powell’s speech and US data.
The rise of the EUR / USD occurs after being able to hold the 0.9950 area as support and before a general strengthening of the euro. EUR/GBP and EUR/CHF are higher on Friday trading at 0.8460 and 0.9650, while EUR/JPY made new highs this hour above 137.00.
The dollar is displayed without a clear address. DXY falls 0.23%, holding above Thursday’s lows. The greenback lost momentum in recent hours, returning against most of its rivals to Thursday’s closing levels. Treasury bond yields are stable.
The focus is on what he will say Jerome Powell, the chairman of the Federal Reserve. It is not clear what he is going to say. It is estimated that he will continue to say that monetary tightening will continue until inflation is brought back under control. The speech can generate a lot of volatility in the market, including the EUR/USD.
Beyond Powell’s words, the economic calendar on Friday includes important data. The key will be the underlying price index for personal consumption spending, along with income and spending figures. More will come out the August report from the University of Michigan on consumer confidence.
Technical levels
Source: Fx Street
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