Bears give no peace to the Euro. Overview for 18.08.2021

EURUSD is attempting to correct but bears are still in the majority. 

The major currency pair is looking weak on Wednesday afternoon. The current quote for the instrument is 1.1715.

Yesterday, EURUSD updated the low of March 31st at 1.1700. Market players were escaping risks due to the spread of a new delta COVID-19 strain, thus raising the demand for “safe haven” assets. The USD did nothing but stood to gain from it. 

Yesterday’s statistics were in favour of the “greenback”. The Industrial Production in the USA added 0.9% m/m in July after expanding by 0.2% m/m the month before and against the expected reading of 0.5% m/m. The Capacity Utilization Rate went from 75.4% in June to 76.1% in July. 

Another report, the Business Inventories, showed 0.8% m/m in June, the same as expected. 

Today, investors’ attention is focused on the evening release of the US Fed meeting minutes, where they will look for any hints at an earlier reduction of the QE program. Anyhow, these expectations are already included in the USD rate.