EURUSD is waiting for what Powell has to say. Overview for 23.08.2019

On Friday, the major currency is under pressure again; investors are focused on events in Jackson Hole.

EURUSD changed the direction once again on Friday afternoon; right now, it is moving downwards. The current quote for the instrument is 1.1069.

Today at 5 PM Moscow time, the US Fed Chairman Jerome Powell will deliver a speech in Jackson Hole. He is widely expected to make some announcements on further prospects of the US monetary policy. The regulator may say something about the QE. Or Powell may confirm that the USA is going to continue the procedure of cutting the rate and explain why. If he does speak of softening the regulator’s monetary policy, the USD will get under serious pressure. 

The FOMC Meeting Minutes published earlier confirmed that the USA set a course for loosening, that’s why market players want Powell to say about this as much as possible. 

The current fundamental background for the European currency is quite mixed, although yesterday’s numbers were quite good. Westpac believes that the European Central Bank is ready to cut the rate and Governor Mario Draghi did a great job to prepare market players for that. In addition to that, the QE revival is also possible. 

There are some complications with Spain and Italy and their finances. Most likely, the ECB will keep this issue in sight, because uncertainty with budgets of these countries may be pretty risky for the Euro Area and the ECB’s monetary policy.