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EURUSD: euro could drop in response to ECB minutes


On Wednesday the 21st of August, trading on the euro closed down. The FOMC minutes didn’t have much of an effect on markets. The US Fed continues to rely mostly on economic data to guide its policy, and is expecting one more rate slash in 2019. The EURUSD pair responded to the minutes with a drop from 1.1101 to 1.1081.

Day’s news (GMT 3):

  • 10:15 France: Markit services PMI (Aug).
  • 10:30 Germany: Markit services PMI (Aug).
  • 11:00 Eurozone: Markit services PMI (Aug).
  • 13:00 UK: CBI distributive trades survey – realized (Aug).
  • 14:30 Eurozone: ECB monetary policy meeting accounts.
  • 15:30 Canada: wholesale sales (Jun).
  • 15:30 US: initial jobless claims (16 Aug).
  • 16:45 US: Markit services PMI (Aug).
  • 17:00 Eurozone: consumer confidence (Aug).

Current situation:

The EURUSD pair has been trading sideways within a range of 1.1066 – 1.1107 since the 16th of August. In today’s Asian session, the pair slipped to 1.1077. The bears are targeting 1.1066 once again. Since the stochastic is in the buy zone, it’s unlikely that the pair will break this level to decline any further.

All eyes are on the Jackson Hole symposium, which starts today and will go on until the 24th of August. The heads of central banks will convene here, along with G7 finance ministers and other financial market officials. The ECB will publish the minutes from its latest monetary policy meeting at 14:30 (GMT 3). This could see the euro collapse against all the majors.

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