News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • #Nasdaq Tanks on Rising U.S. Yields, ARKK Appears to Confirm a Double Top Pattern #trading $ARKK $NDX https://t.co/lNlEsJnEyk
  • #Nasdaq Tanks on Rising U.S. Yields, ARKK Appears to Confirm Double Top Patter #trading $ARKK $NDX https://t.co/lNlEsJnEyk
  • I'm all for the diversify, but we are missing some steps between A and Z here...
  • Seeing articles show up in my search results that are obvious plants from traditional investment firms trying to get the new generation to open the traditional and passive account types they operate https://t.co/xGoaGqHpyg
  • The options market can be an excellent place to express trading ideas, as it presents numerous ways to structure trades with various risk profiles. Learn to trade the Options market with DailyFX. Download your free guide here! https://t.co/B78Mn99fU0 https://t.co/EpUMWMSGWO
  • On this week's Macro Setup @HathornSabin discusses with @GuyAdami & @RiskReversal the September stock swoon, rate rampage, and dollar dominance. Check it out! https://t.co/k68k2UP7rr https://t.co/0kGvdXWrDK
  • Fed's Bostic: - Any decision on a central bank digital currency is a long way off - Taper is warranted if current trends continue
  • Heads Up:🇺🇸 Fed Bostic Speech due at 19:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • Canadian #Dollar Outlook: $USDCAD Snaps Five-Days Down- Reversal Risk - https://t.co/O2MYTxe7bE https://t.co/tqIZUjE7pZ
  • AUD/USD lower on the day, but appears to be finding support around 0.7231 $AUDUSD https://t.co/XNnQWvJP4A
Euro Latest: EUR/USD Could Break Lower, Powell Speech in Focus

Euro Latest: EUR/USD Could Break Lower, Powell Speech in Focus

Martin Essex, MSTA, Analyst

EUR price, news and analysis:

  • EUR/USD is in danger of breaking below trendline support on the daily chart.
  • A prompt could be a speech due at 1300 GMT on current economic conditions by US Federal Reserve Chair Jay Powell.
  • Fears of a second wave of coronavirus infections, US-China trade tensions and a debate on whether US interest rates should be cut below zero are all weighing on market sentiment and could potentially benefit the safe-haven US Dollar.

EUR/USD in danger of breaking lower

A host of market worries could potentially benefit the safe-haven US Dollar near-term, leaving EUR/USD at risk of breaking below trendline support that has been in place for almost two months. Since then, the pair has traded around the 1.09 mark but a break below 1.08 would likely lead to further losses.

EUR/USD Price Chart, Daily Timeframe (January 14 – May 13, 2020)

Latest EUR/USD price chart.

Chart by IG (You can click on it for a larger image)

Federal Reserve Chair Jay Powell is due to talk at 1300 GMT on current economic conditions and his speech could prove a catalyst for the drop in EUR/USD following US President Donald Trump’s call for negative US interest rates. Powell seems likely to push back on that idea but negative rates remain a possibility, with market pricing suggesting they could come as early as the start of next year.

You can find out here how central banks impact the forex market.

In addition, the safe-haven USD will likely benefit from an escalation of US-China trade tensions and growing fears of a second wave of coronavirus infections. The White House’s top US infectious disease expert, Dr. Anthony Fauci, warned Congress Tuesday that some states are prematurely reopening businesses, risking additional outbreaks of coronavirus, particularly among the most vulnerable populations.

We look at currencies regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES