EUR/USD ready to resume the downside?

By FXStreet FXStreet (Edinburgh) – After hitting multi-month peaks just above 1.1700 the figure following Chinese events, EUR/USD has been retreating since then and is currently about to close its second consecutive week in red figures.

Fed’s lift-off in September?

Positive readings from the US labour market during August have teamed with previous auspicious results in the US economy, particularly the better-than-expected GDP revision for the second quarter.

All adds to increasing market expectations of the Fed resuming its normalization of the monetary policy this month after almost a decade, giving at the same time fresh oxygen to the greenback and opening the door to a resumption of the broader bearish prospect for the pair, that is, the divergence in monetary policy by the ECB and the Fed.

Hence, the possibility of the Fed hiking rates this month plus the return of the activity in the Chinese markets on Monday emerge as the main drivers for the global sentiment in the upcoming sessions.
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Source:: FX Street