Ahead of the Jackson Hole Central Bank Symposium, the United States rose against all major world currencies.
EUR/USD – Daily chart
EUR/USD is trading at 1.0850 support, which opens the door to a downside to 1.07.
The ski resort in Jackson Hole, Wyoming, is an annual meeting place for the world’s central bankers. The three-day meeting will conclude on Friday with speeches by Fed Chair Jerome Powell and ECB President Christine Lagarde.
Ross Norman said: “The elephant in the room is still the US Treasury yield, which is currently at a 16-year high.”
Investors will expect Fed Chairman Jerome Powell to speak on US interest rates and inflation. His speech on Friday will be streamed on the Kansas City Fed’s YouTube channel. The Fed recently released the minutes of its July meeting, emphasising that most Fed governors still believe it is necessary to raise interest rates.
ECB President Christine Lagarde’s speech on Friday will also give traders clues as they prepare for the bank’s September interest rate decision. In July, the president of the European Central Bank said policymakers would study economic data before making any judgments.
Europe’s economy remains weak, Germany is in recession and Chinese demand is slowing.
Traders can keep an eye on the current support level of EUR/USD and wait for any comments from the central bank in the coming days.