EUR/USD: 1.1120 depends on outcome of ECB – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the American dollar ended the day mixed against its rivals, as investors traded on relief, with Asian share markets quieter than usual.

Key Quotes:

“The Shanghai Composite closed 0.2% lower, and China will have a holiday this Thursday, having no saying in what’s next for currencies. Investors however, remained cautious as the ECB will have its economic policy meeting during the upcoming European session, whilst the US will release its monthly employment figures next Friday.”

“As for the first, the ECB is generally expected to present a dovish stance, acknowledging the current low inflation levels, by downgrading its forecast, and even reiterate its willingness to extend the ongoing QE. The statement may play negatively on the EUR, but markets will likely wait until US employment figures to decide clear trends, as the possibility of a US September rake hike can well be determinate by the report.”

“The EUR/USD pair fell down to 1.1221, despite the US ADP survey missed expectations for August, as the private sector added 190K against a 200K forecast, with the greenback finding support in Wall Street’s recovery.”

“By the end of the day, the pair has remained …read more

Source:: FX Street