- EUR/USD falls more than 100-pips on Wednesday.
- Today’s focus is on US Jobless Claims and ECB Discussion Points.
The dollar made a strong comeback from its 27-month lows helped by the FOMC July meeting’s minutes yesterday, which showed the lack of support for the yield curve control as a policy option.
The EUR/USD is consolidating now with a bearish undertone, near 1.1850 dollars, before the London market opens. Overnight, US session witnessed a 100-pips sell-off in the pair, on the Fed minutes and strong bond-auction. The US Treasury yields didn’t support the dollar upside, and the returns are weak on Thursday.
The recent slump is immediately after touching a near two-year high of 1.1956 in the EUR/USD.
The increase in coronavirus cases in Spain, Germany, France and Italy has triggered fears of a second wave of the pandemic; this would drag the Euro.
Today – the market will focus on the US Jobless Claims, Philly Fed Manufacturing Survey and the European Central Bank (ECB) policy meeting’s minutes.