The US won against the world’s major currencies before the Jackson Hole central bank meeting.
EURUSD – Daily Chart
The EURUSD traded at the 1.0850 support level, which opened the door to 1.0700.
The ski resort of Jackson Hole, Wyoming, is an annual gathering of the world’s central bankers. The three-day meeting will conclude on Friday with speeches from Jerome Powell of the Federal Reserve and the European Central Bank’s Christine Lagarde.
“The elephant in the room continues to be US Treasury yields, which are at a 16-year high,” said Ross Norman.
Investors will be anticipating what Fed Chairman Jerome Powell will have to say regarding US rates and inflation. His speech on Friday will be broadcast on the Kansas City Fed’s YouTube channel. The Fed recently published the minutes of its July meeting, highlighting that most Fed governors still saw a need for higher rates.
European Central Bank President Christine Lagarde’s speech on Friday will also provide clues to traders ahead of the bank’s next interest rate decision in September. In July, the ECB chief said policymakers would study economic data before any judgment.
The European economy has remained weak, with Germany in a recession and slowing demand from China.
Traders can watch the current support level in the EURUSD and wait for any central bank comments over the next few days.
