The major currency pair continues falling, but not as fast as before.
On Tuesday afternoon, EURUSD remains under bearish pressure, but not as much as earlier. The current quote for the instrument is 1.1079.
This week, investors are focused on the Jackson Hole Symposium, which is scheduled to start on Friday. Market players are expecting a speech from the US Federal Reserve Chairman Jerome Powell and believe that he may say something about the regulator’s monetary policy. Most investors think that the FOMC will stick to “soft” approach to its monetary policy and prepare a basis for further rate cuts.
However, one should understand that the numbers published by the USA recently were quite neutral and showed that the American economy didn’t require any incentives.
And if the FOMC does intend to continue cutting its rates in the future, in Jackson Hole market players will surely hear something like “wish the retail sales were more dynamic” or “wish the consumer spending were more significant”. In other words, bankers and monetary policymakers have to signal that the country’s economy is ready for further rate cuts, even if is not true.
Orgin: RoboForex
