The Euro has come under pressure in today’s trading session, breaking its 3-day winning streak, after yesterday’s round of economic data gave mixed signals on the US and European economies.
The US Richmond Fed Manufacturing Index data for August was released to the market at 9 which was well below analysts expectations for a figure of 25, while the New Home Sales numbers rose 0.708m.
The latest GDP numbers from Germany came in at 9.8 which was slightly above analysts’ expectations for a figure of 9.6 and gives hope that Europe’s biggest economy is continuing to recover after the effects of the coronavirus which has decimated the economy
Looking ahead for today, the US Durable Goods Orders for July will be the news to watch and is expected to be the main driver of the EUR/USD currency pair.
From Wednesday, we will see the Jackson Hole Symposium which will grab everybody’s attention this week, as the talk of tapering and interest rate hikes continues to be the most important thing at the moment which is driving the EUR/USD currency pair.
The consensus for now is that the Fed will give signs to the market that they plan to move ahead with tightening monetary policy later in the year which will probably put a stop on any further gains for the Euro against the greenback as the week unfolds.