The European currency continued its gains against the US dollar, supported by the weakness of the dollar due to the disappointing US economic data, which was issued yesterday, as it came as a disappointment to the hopes of the Federal Reserve continuing its tightening process and raising interest rates, in addition to the deterioration of expectations regarding the labor market, and the anticipation of the preliminary data of the US gross domestic product.
In the meantime,
Although European Central Bank President Christine Lagarde struck a somewhat hawkish tone in Jackson Hole last week. However, these statements failed to bring about changes in current interest rate expectations, while today’s data came to indicate a recovery in the yield on 10-year German bonds, exceeding 2.5%, which led to the euro rebounding and receiving more purchasing power, as it was reinforced by German data indicating an acceleration The pace of German inflation rises. Expectations that the European Central Bank has not finished its tightening cycle yet. Cautious sentiment will continue to dominate the markets before the release of inflation data in the eurozone and the US jobs report scheduled for later this week.
Looking at the charts, the euro has received purchasing power since yesterday’s trading, to rebound upward from the support levels around 1.0806, settling in its trading above the 20 and 50-day moving averages, to trade around the price of 1.0900, which is its highest price in a week, so it is likely that The pair is heading to target new resistance levels around 1.09380, then in the event of a breach, we will target the next price levels around 1.1015.
