Last week the market was busy awaiting Jackson Hole's speeches from key monetary officials. This week the market will be digesting the consequences of the speeches.
The surprising rise of euro was not about ECB's Draghi. He kept silence on the sensitive issues, though confirmed the positive momentum in Eurozone.
It was all about Janet Yellen. She was quite optimistic, but she didn't say anything the market would like to hear. No comments on balance sheet reduction, not a word on December rate hike. And given the exaggerated investor expectations it was enough to dump USD.
So what is next? US Non-Farm Payrolls of course, scheduled for release this Friday. This time the reports will be scrutinized even more closely than usual, as it's the last piece of labor data before the September FOMC meeting.
And there are all the chances USD will sink even deeper, as hardly we may see two strong labor report in a row.
The market may start to price in such odds from the beginning of the week, meaning EURUSD has the potential to reach strong resistance level at 1.20 sooner rather than later.
The surprising rise of euro was not about ECB's Draghi. He kept silence on the sensitive issues, though confirmed the positive momentum in Eurozone.
It was all about Janet Yellen. She was quite optimistic, but she didn't say anything the market would like to hear. No comments on balance sheet reduction, not a word on December rate hike. And given the exaggerated investor expectations it was enough to dump USD.
So what is next? US Non-Farm Payrolls of course, scheduled for release this Friday. This time the reports will be scrutinized even more closely than usual, as it's the last piece of labor data before the September FOMC meeting.
And there are all the chances USD will sink even deeper, as hardly we may see two strong labor report in a row.
The market may start to price in such odds from the beginning of the week, meaning EURUSD has the potential to reach strong resistance level at 1.20 sooner rather than later.