[EUR] Rising Euro Ahead of FOMC 2020 0915

EUR/USD four-hour chart, source:FXDD.com

 

cf. [EUR] First Support Level Price of Euro 1.1760 2020 0909

cf. [EUR] After Non-Farm Payrolls 2020 0905

cf. [EUR] EUR, Trying to Exceed 1.20  2020 0902

cf. [EUR] Before Powell's Speech 2020 0827

Gjallarhorn holds the Long position of euro in the futures market, CME. It records the loss yet.

One of the major currency pair EUR/USD fluctuates not showing the explicit trend in the four-hour chart since August. There were several attempt to break through 1.20, but it was failed and the price has hovered.

Also we can find out that the price has raised its bottoms, and it support the long bias to euro and the weak greenback.

Ahead of FOMC Economic Projections on Wednesday, the pair seems to keep the moving up-and-down in the Bollinger Bands. After FOMC's release and press conference, the currency pair will set its new trend whether exceeding 1.20.

Before FOMC's press release and the release of its benchmark interest rate on Wednesday, the greenback stepped down. Market participants expect Fed will freeze the Federal Funds Rate below 0.25 percent and keep the dovish stance. It makes the greenback down.

Fed Chair, Jerome Powell spoke Flexible Form of Average Inflation Targeting at Jackson Hole Symposium, it implies Fed will not raise the benchmark interest rate though the inflation hit over 2 percent. It is predicted that FOMC will provide additional forward guidance to show how the flexible form of average inflation targeting' works to support Powell's remarks.

But European Central Bank worries about the recent euro's rising. Because the strong euro burden the economy recovery in Eurozone. And it may restrain the rising height of euro.

Meanwhile the experts in Wall Street think it takes long time for the US economy to recover. Analysts predict that the dollar will continue to weaken for at least three months.

Netherlands's bank ING forecasted euro's rise to 1.20 in one month. After this correction euro keeps upward rise due to the fundamental momentum.

And Vice-Fed Chair, Richard H. Clarida has spoken the natural rate of interest had gradually dropped since 2012 and began to reconsider the monetary-policy frame. And he hinted FOMC might use Yield Curve Control(YCC) if needed.

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