The euro Held in today’s trading near 1.0808 levels, despite the decline in the US dollar, while European stocks rose by nearly 1%, supported by the rise in technology stocks after a refreshing closing on Wall Street, and in the meantime, China announced new measures to strengthen capital markets. and enhance investor confidence. Traders are also assessing the hawkish comments made by both Federal Reserve Chair ” Jerome Powell” and “European Central” Bank President Christine Lagarde in Jackson Hole on Friday, which boosted markets’ expectations for the path of interest rates, and later this week’s expectations are building. The purchasing managers’ index for the manufacturing and service sectors rose for the month of August, in addition to US personal consumption expenditures price inflation data, which is the US Federal Reserve’s preferred indicator of inflation, as well as Non-Farm Employment Change.
The Stoxx 600 index rose 0.60% supported by data released this morning showing the euro area’s M3 money supply decreased by 0.4% annually to 15.6 trillion euros in July 2023, contrary to market expectations of no change. This marks the first decline in M3 money supply since May 2010.
In light of the euro’s weak performance against the US dollar, the pair continues to decline over the medium term. Weak selling pressure has kept the pair stable around the support levels of 1.0808, trading below the 20- and 50-day moving averages. The 20-day average is acting as resistance in price movements, which indicates that the pair may continue its bearish trend and target the next support levels around 1.07150, and 1.06375.
