Eur usd exchange rate what could break the range 1 usd to vnd


Summer markets are often dull, and this year is no different. The EUR/USD exchange rate has traded a 250 pip range in August venezuela money to us dollars. Which catalysts have the potential to break the range.

EUR/USD has spent the month of August in a fairly tight 1.166-1.19 range. Coming at the end of a 15% rally, this can viewed as bullish consolidation binary search tree visualization. Buyers are taking a well earned break and there is no aggressive selling.

Data out of the euro area now has a lot to live up to and there are concerns that the Euro’s strength may hinder progress. However, the data has stayed strong and today’s eurozone PMIs showed a marginal improvement in the composite PMI asian stock market futures. This was driven by a jump in the manufacturing sector, which increased to 57.4 from 56.6 binary to english translator. Germany again posted some stellar figures, with manufacturing PMI at 59.4.

Here is Unicredit’s take,

‘The recovery in the eurozone remains in full swing, with the manufacturing sector proving quite resilient to the recent euro appreciation as demand conditions remain buoyant… Manufacturers reported that new export orders expanded at the fastest pace in six and a half years. Stronger order inflows added to capacity pressures, with manufacturing backlogs increasing at the fastest pace since 2006. All in all, today’s reading supports our view that the recovery in the eurozone proceeds at a healthy pace, with improving labor market prospects rate gbp to usd. This is likely to strengthen the ECB resolution to scale back stimulus early next year, with a tapering announcement due either in September or in October’.

Yet despite all this, the Euro had a fairly lackluster session, with a EURUSD low of 1.174 reversing toward 1.18 gbp usd live chart. All told, the PMI data was only good for around 50 pips, and EURUSD is still 100 pips below the early August highs. It seems demand is suppressed ahead of the Jackson Hole meeting later this week.

Although ECB President Mario Draghi famously used his Jackson Hole speech to warn the market about inflation dangers in 2014, it seems very unlikely for there to be much market moving information in Draghi’s speech this year funny jokes for adults dirty. He is scheduled to talk on Friday evening, and the chances are the contents will be forgotten by the time the market re-opens on Monday.

However, Credit Agricole highlighted another potential near term risk for the Euro, and as it has gone largely unnoticed so far, it could have a significant effect if it gains traction.

‘Concerns seem to be re-emerging ahead of the Italian parliamentary election. Indeed, recent comments by Italy’s ex-Prime Minister Berlusconi that seemingly endorsed the idea about funding government liabilities with paper denominated in a parallel currency have caught markets’ attention and triggered renewed widening of the BTP-Bund yield spread convert cny to usd. Depending on the persistence of the move, EUR downside risks could grow in the very near term. ‘

On the other side of the equation, the US dollar has found some support in a technically significant spot near the 2015-2016 lows and the 200 week moving average. This comes at a time when the Trump administration has managed to avoid more theatrics, and briefly returned to politics with a firm move on its Afghanistan policy. Tax reform is still on the agenda, and a recent Politico suggested it is not as distant and unlikely as some may think gender identity issues. This from Credit Agricole,

‘The report suggested broad consensus among Republican leaders on the main principles of tax reform, including revenue raising measures such as capping the mortgage interest deduction, ending the deductibility of state and local taxes from Federal tax and a one-off repatriation tax on overseas earnings.‘

The mere hope of this may keep the USD from collapsing further, although focus will soon turn to the big ECB meeting in September where taper news is hotly anticipated.

Topics: Euro, US Dollar, Germany, Italy, Euro Exchange Rate, EUR USD, EUR to USD, European Central Bank, Federal Reserve, Euro to Dollar, UniCredit,

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