The EURUSD exchange rate has shown some weakness from the early week data and still has ECB policymakers and FOMC minutes ahead.
EURUSD has dipped to 1.1712 after resistance at the 1.1800 level. The first support comes in at 1.5805 if further sellers emerge.
The euro has three speeches due at 15:30pm HKT and 18:45, from policymakers De Guidnos and Escriva, as well as comments from Chief Economist Philip Lane. The comments could test the recent uptrend after the early week dip and before Thursday’s open, the FOMC will release its latest meeting minutes at 2am HKT.
That could mean that Thursday and Friday’s sessions are important for the EUR v USD.
The euro did get some help that its economy was not on a list of countries expecting letters from US President Trump. He also signed an executive order to push the deadline for the implementation of tariffs to August 1. His latest efforts targeted Asian countries, including Japan, South Korea and Thailand.
Stephen Miran, chairman of the White House Council of Economic Advisers, said:
“I hear good things about the talks with Europe. I hear good things about the talks with India. And so I would expect that a number of countries that are in the process of making those concessions … might see their date rolled”.
ECB President Christine Lagarde is not worried about recent euro strength, saying “It’s a reflection of the market conditions and assessment”. She added that it’s a reflection of “strength” in the European economy.
The ECB has gotten inflation down toward its 2% target but the tariff scenario still looms. Speeches ahead and the FOMC minutes could see some further profit-taking.
