EUR/USD Nears Lows; Focus on Powell
EUR/USD weakened slightly in the European session on Wednesday (August 20th), trading around 1.1638 after briefly touching a weekly low near 1.1620. More cautious market sentiment ahead of the FOMC minutes and the Jackson Hole Symposium boosted demand for the US dollar as a relative safe haven, putting pressure on the euro
From Europe, the final Eurozone CPI release confirmed stable inflation in July. Christine Lagarde's comments at the World Economic Forum in Geneva—that the latest trade deal has not eliminated uncertainty and that fourth-quarter growth could weaken—failed to lift the euro, although she assessed the region's economy as still resilient this year.
Geopolitical factors also weighed. Initial enthusiasm following the Trump-Zelenskyy meeting faded after a statement from the Kremlin cooled the chances of a quick Putin-Zelenskyy meeting. The cooling of peace prospects added pressure on the euro and kept the dollar dominant.
What the market is watching:
• FOMC minutes tonight (potentially limited impact).
• Jerome Powell's speech at Jackson Hole on Friday for clues on the near-term path of interest rates.
• Technical levels: support at 1.1620; potential rebound to face resistance at 1.1700 if the Fed's tone is more dovish.
• The direction of the DXY remains crucial for the EUR/USD's future trend.
Source: Newsmaker.id
