August 29, 2021

Daily U.S. Session Watchlist: EUR/USD

 It’s Jackson Hole day so you KNOW we’re gonna be lookin’ at dollar majors.

What do you think of trading EUR/USD’s short-term resistance?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. corporate profits soar in second quarter; economic growth raised

Kansas City Fed’s Esther George: ‘Time to begin’ tapering asset purchases

St. Louis Fed’s Bullard says the Fed has to ‘get going’ on the taper, may need to get aggressive to stop inflation

Dallas Fed’s Kaplan calls for tapering announcement in September

At least 13 US service members killed in Kabul airport attack

US Q2 economic growth revised higher, but falls short of expectations

U.S. jobless claims rise for first time in five weeks, but still near low for pandemic era

Japan’s consumer price falls narrow on global commodity inflation

Australia retail sales plunge in July, economy set to shrink

China’s slowing industrial profit growth bolsters policy support hopes

PBoC makes biggest weekly cash injection into banking system since Feb

Nikkei follows Wall Street lower amid caution before Jackson Hole

Dollar awaits Powell’s remarks as hawks urge early taper

German import prices hit largest increase in 40 years

Upcoming Potential Catalysts on the Economic Calendar:

U.S. core PCE price index at 12:30 pm GMT

U.S. personal income and spending numbers at 12:30 pm GMT

Fed’s Powell to give Jackson Hole speech at 2:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: EUR/USD

Now that the Spider-Man : No Way Home trailer is out, traders can focus on Fed Chairman Powell’s Jackson Hole speech at 2:00 pm GMT.

A few weeks ago, market players were betting on the Fed head honcho to drop deets on the Fed’s tapering plan and/or schedule during the event. But that was before the Delta variant, global growth concerns, and the Kabul bombing weighed on risk sentiment.

Today, traders believe that JPow can afford to wait a few weeks more before confirming the Fed’s tapering plans.

If he plays up the downside risks of the Delta variant on the economic recovery and hints of pushing back their tapering schedule, then we could see risk-taking that would boost EUR/USD above its 1.1775 range resistance. A trip to 1.1800 is likely though 1.1850 is also an option if we see enough momentum.

But if Powell echoes his Fed crew and hints that they would scale back their easy policies, then we could see dollar demand that would drag EUR/USD down to inflection points like 1.1750, 1.1725, or 1.1700.