Strength in euro rally is getting slightly weaker after August euro zone inflation printed below consensus.
However dollar losses was halted on late Tuesday as investors weighed up the Federal Reserve’s policy shift on inflation and the latest data on the global economic recovery. Earlier the slide in the greenback initially pushed sterling to its highest level so far this year, at $1.3470, and propelled the euro briefly above $1.20 along renminbi hit the highest in a year at $6.81.
Additionally some rumors of concern from the strength of euro from euro zone politicians and from the European Central Bank, which views an overly strong currency as a drag on inflation – August inflation was lower than consensus. Admittedly ECB is unlikely to push back on euro appreciation with rate cuts this time around, given its efforts to bolster the euro’s reserve currency status with the creation of an EU recovery fund.
TREND : WEAK BEARISH / SIDEWAYS
Time : 02/09/2020
Pivot : 1.1935
Technical View : LONG ABOVE 1.1955
Target : 1.1975, 1.1983, 1.2059, 1.2102
Technical View : SHORT BELOW 1.1915
Target : 1.1895, 1.1844, 1.1811, 1.1735