The U.S. dollar hovered just above a two-year low on Wednesday, while stocks struggled, as growing worries about the U.S. economy had investors cautious and looking to Congress and the Federal Reserve for a boost.The Fed is expected to strike a dovish stance at its policy review later in the day and perhaps open the door to a higher tolerance for inflation – something dollar bears think could squash real yields and sink the currency even further.A $1 trillion U.S. fiscal rescue package is also at an impasse as a Friday deadline to extend unemployment benefits looms.
Euro continues to trend upwards and sharp pickup in economic activity in major EU countries notably Germany supported the momentum in bloc currency. Latest July business survey in Germany showed a sharp jump after it suffered between February and April.
Based on such survey, we are expecting second quarter GDPof Germany may have declined by around 5% QoQ or -7% YoYagainst market expectations of -9%. However other large countries may not recover quickly as currently projected which is apparently sufficient enough to scale-up the euro rally in near term.
TREND : BULLISH
Time : 29/07/2020
Pivot : 1.1723
Technical View : LONG ABOVE 1.1743
Target : 1.1763, 1.1773, 1.1798