On Monday, EURUSD managed to close above 1.18, but it is sliding down Tuesday morning. The pair feels unstable, as the ECB hinted last week that President Draghi will not reveal any new policy paths during the Jackson Hole symposium,
It means QE tapering may come not earlier than October, although before the market priced in September as the start of tapering process. And this will be the main factor for EURUSD to be capped by 1.1800 for now.
Although strong euro is damaging for export oriented German economy, there is still a hope that Draghi may be a little bit more hawkish during his speech in Jackson Hole, just because economy is doing quite well.
We saw significant fall in unemployment to lowest level since February 2009 (it was 9.1% in June). We also saw strengthening price pressure: from 0.2% yoy in July, 2016 it rose to 1.3% currently. And if we hear any positive comments from Draghi this week, it may fuel the EURUSD rally.
The nearest target for the pair may become 1.1850 followed by 1.1890.
It means QE tapering may come not earlier than October, although before the market priced in September as the start of tapering process. And this will be the main factor for EURUSD to be capped by 1.1800 for now.
Although strong euro is damaging for export oriented German economy, there is still a hope that Draghi may be a little bit more hawkish during his speech in Jackson Hole, just because economy is doing quite well.
We saw significant fall in unemployment to lowest level since February 2009 (it was 9.1% in June). We also saw strengthening price pressure: from 0.2% yoy in July, 2016 it rose to 1.3% currently. And if we hear any positive comments from Draghi this week, it may fuel the EURUSD rally.
The nearest target for the pair may become 1.1850 followed by 1.1890.