The EURUSD exchange rate has continued its recent gains and awaits FOMC minutes this week, alongside the Jackson Hole Symposium.
EURUSD – Daily Chart
The price of the EUR v USD has found strength above the 1.0950 resistance level. There is now the potential for a push toward the 1.1139 level.
The world’s most active exchange rate could see volatility later in the week with the release of FOMC minutes. The record of the latest Federal Reserve interest rate meeting could give clues to the central bank’s plan for monetary policy.
Thursday is also the beginning of the annual Jackson Hole Symposium, where the world’s central bankers meet to discuss economics. All eyes will be on Federal Reserve chairman Jerome Powell when he delivers a speech on Friday about the US economy.
Economists now expect Powell to signal a cut in borrowing costs after the FOMC held its benchmark rate of 5.25% to 5.5% last month. The move put the US central bank at odds with the Bank of England, which decided to cut interest rates for the first time in more than four years. The European Central Bank is also cutting rates as inflation drops back to target.
Ahead of the conference, analysts at AJ Bell said: “Investors are grappling with the implications of policy divergence and central bankers are finding themselves centre stage for reasons with which they may not feel entirely comfortable”.
“Markets are likely to pay attention, especially as they continue to price in – and even bay for – rate cuts from the US Federal Reserve… Some investors may hang onto every word”.
The EURUSD will also see core inflation from the eurozone on Tuesday, which is expected to stay at 2.9%. Thursday also brings the ECB’s minutes from the latest rate meeting.
