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EUR/USD holds near 1.17 as Fed outlook drives FX move
The pair is trading around 1.1665, with technical levels pointing to 1.1714 as the next test ahead of Jackson Hole and US PCE data.
EUR/USD has regained ground in recent sessions and is trading near 1.17, as broad US dollar weakness continues to shape foreign-exchange markets, according to Action Forex. The key focus is how the Federal Reserve manages its restrictive stance while US growth shows signs of slowing.
Investors are watching whether Fed Chair Kevin Warsh can maintain a hawkish tone at Jackson Hole on Friday, with the potential for persistent inflation and higher long-term Treasury yields to support expectations of tighter policy. The outlook could shift quickly if US growth weakens further or inflation prints cool, strengthening expectations for easier policy.
In Europe, euro-area inflation rose to 2.9% in July, keeping price pressures above the ECB’s 2% target, while the ECB has kept interest rates unchanged since June. Action Forex also highlighted upcoming US PCE inflation data and the Jackson Hole symposium as possible catalysts for whether the euro extends its advance or the dollar rebounds.
On the chart, the article cites a decisive break above a descending trendline from February highs, with EUR/USD around 1.1665 and above the 100-period EMA near 1.1546 and the 0.382 Fibonacci retracement around 1.1579. It flags 1.1714 as the next major resistance level, where a clean break could open the way toward 1.1775 to 1.1800, while rejection followed by a drop below 1.1579 would weaken the bullish setup.
Latest closeEUR/USD 1.157 ▲0.4%