The Euro is retreating again. Overview for 17.08.2021

After s short pause, EURUSD is back to falling. 

The Euro is retreating against the USD all over again. The current quote for the instrument is 1.1765.

The statistics published today showed that the Euro Area GDP added 2.0% q/q and 13.6% y/y. This is the second estimate and it’s not the final one. The first estimate showed 2.0% q/q and 13.7% y/y. 

The USD is getting stronger due to the external background, which raises the global demand for “safe haven” assets. First of all, it’s a political turmoil in Afghanistan that is eventually disturbing financial markets. Secondly, it’s yesterday’s numbers from China, which didn’t deliver upon expectations. In addition to that, the delta strain of the COVID-19 continues spreading around the globe and that’s another issue investors are worried about. Taken together, all these factors provide significant support to the “greenback”. 

As early as tomorrow, the US Federal Reserve System will publish its Policy Meeting Minutes. If the document hints at a possible reduction of the QE program ahead of the schedule, the USD will get additional support. 

In fact, it’s the document that will define the short-term direction of the American currency. It happened quite often in the past – if market players found any hints or indications that they were right, the “greenback” rose in price pretty much.