- Foreign exchange market with most of the tours in ranges and limited.
- Expectation for Powell’s speech, first there will be US data.
- EUR / USD without clear direction after failing to break 1.1770.
The EUR / USD is trading on Friday with a small gain and in positive territory for the week but the key event that is the speech of the Fed chairman is still missing, Jerome Powell. The pair rose from 1.1741 and stopped at the 1.1770 area, remaining sideways around 1.1755.
The expectation on Friday is on the words of Jerome Powell. In the previous volatility in currencies and stocks is at low levels. According to analyst forecasts, the Fed chairman could give explicit signals about a cut in the purchasing program, to say little more than the message from the July FOMC meeting. The latter, according to TD Securities analysts, would imply affirming that a reduction is possible by the end of the year if the labor market data continues to show strength.
Before Powell’s exposition, July’s personal income and spending report will be published in the US and later indicators of consumer confidence. Except for big surprises, these figures could be overshadowed.
The EUR / USD enters the American session by retreating in a limited way from highs in one week, That reached about 1.1775 on Thursday. A confirmation over 1.1775 would point to an extension towards the 1.1800 area. In the opposite direction, now 1.1745 appears as the support to consider in the short term, followed by 1.1720 and then 1.1700 / 05.
Technical levels
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