The Euro continues strengthening. Overview for 31.08.2021

EURUSD is trading within a rising channel and trying to keep its positive momentum. 

The major currency pair continues its steady and stable growth. The current quote for the instrument is 1.1824.

Last Friday’s comments from the US Fed Chairman Jerome Powell, who said that the regulator was considering a possibility of an early reduction of its QE program at the end of the year without revising interest rates, are still putting a lot of pressure on the “greenback”.

Yesterday, the Euro paid no attention to the CPI report from Germany, which was quite impressive: the indicator showed 3.9% y/y, which is the highest reading over 13 years. 

Later today, one should monitor the preliminary data on the CPI in the Euro Area, which may show 2.7% y/y in August after being 2.2% y/y the month before. the Core CPI in the region may go from 0.7% y/y to 1.5% y/y.

In the evening, the USA is scheduled to report on the Conference Board Consumer Confidence, which is expected to be rather disappointing – 122.9 points in August against 129.1 points in July.