- EUR/USD stays inside a familiar range without a strong directional move.
- Eurozone PMIs and Fed officials will attract attention this week.
The EUR/USD on Friday traded in an earlier established range around mid-1.1800s. Worries over the second wave of coronavirus infections and lessened chances of a V-shaped recovery worried the pair traders. Such a mood pulled down the global equities last week—the bearishness in pro-risk assets was also enhanced by the less dovish comments by the FOMC on Wednesday.
The Fed policy ignited more demand for the dollars, and the better-than-expected preliminary Michigan Consumer Sentiment Index helped the greenback. The consumer sentiment index climbed to 78.9 in September from 74.1 earlier.
The dollar demand was mostly offset by the hopes of securing a vaccine against coronavirus quickly. Also, the lack of clarity regarding the US fiscal stimulus checked dollar demand as it triggered economic growth worries. Traders refrained from placing aggressive bets due to the lack of clarity on the market triggers and resulted in an indecisive candle formation – a Doji in the weekly charts. The EUR/USD settled unchanged for the week, similar to the previous week.
Today, EUR/USD was slightly up as the investors awaited the Fed Chair Jerome Powell’s comments along with other FOMC members’ remarks during their scheduled speeches. Powell will also testify before the Congressional committees later this week. Another critical data for the traders is the Wednesday’s release of the Eurozone preliminary PMI reports for September. The comments and the PMI will be keenly watched for further directions.