EURUSD Still Looking For a Stimulus After Benign Data

USD – Price, Chart and Technical Analysis

• EURUSD trades just under 1.1700 and looks capped at 1.17336 in the short-term.
• Personal consumption unchanged while income nudges a fraction lower.

The DailyFX Q3 forecast and analysis of the US Dollar is available to download here.

USD Needs Something to Prompt the Next Move

EURUSD traded sideways after the latest look at US personal spending and prices paid gave no fresh clues on the state of the US economy. Earlier this week the second look at US Q2 GDP had given dollar bulls hope with a higher-than-expected reading of 4.2% against 4.1% for the previous quarter.

US PCE Core (YoY) rose by 2.0% matching market expectations of 2.0% and a prior month’s reading of 1.9%, while US Personal Income for July rose by 0.3% versus expectations and a prior reading of 0.4%.

US Retail Sales Advance (MoM) – released on August 15 – beat expectations (0.1%) by printing at 0.5% against a prior month’s reading of 0.2%, fuelling thoughts that consumer spending would remain robust, although proved unfounded.

Traders attention will now turn to Friday’s Chicago PMI and U. of Mich Sentiment.

EURUSD One Minute Price Chart (August 30, 2018)

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What’s your opinion on the US dollar? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst