EURUSD managed to reverse early losses and climbed to positive ground for the day during the New York session, although the upside was capped by the 1.1330 Resistance zone.
EUR/USD fell to a low of 1.1270 soon after the weekly opening but found support and it has been slowly inching higher ever since. The pair reached a high of 1.1330 in recent dealings and eased slightly to currently trade at 1.1315, virtually unchanged on the day.
There were no major data releases in Europe nor the US, leaving EUR/USD moving in tandem with broader market sentiment. Investors remain wary ahead of the Jackson Hole Symposium of central bankers, with main focus on Fed’s Yellen speech on Friday.
Last Thursday marked the first time in two years that EURUSD closed above the 100-week moving average. Whether or not this technical development is the first fruits of a kick-off higher or now will likely be determined by the Jackson Hole Symposium where Janet Yellen will speak to the theme, “Designing Resilient Monetary Policy Frameworks for the Future.”
From a fundamental point of view, one would think the US Dollar should soon strengthen. Interest Rates Probabilities per Bloomberg’s data show traders are now pricing in a rate hike. However, new discussions over the neutral rate”—the rate that signifies the dividing line between an accommodative and a restrictive monetary policy may complicate matters for Dollar Bulls.
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