- EUR/USD remains on track to close flat on Wednesday.
- US Dollar Index struggles to hold above 93.00.
- Focus shifts to US GDP data, FOMC Chairman Powell’s speech.
After spending the first half of the day moving sideways near 1.1800, the EUR/USD pair came under bearish pressure in the early American session and dropped to a daily low of 1.1772. However, with the greenback struggling to preserve its strength, EUR/USD erased its losses and turned flat on the day at 1.1830.
DXY returns below 93.00
Amid a lack of significant macroeconomic data releases from the euro area, the USD’s market valuation continued to impact EUR/USD’s movements on Wednesday.
Earlier in the day, Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), noted that the negative interest rate policy had been successful and added that the ECB hasn’t reached the effective lower bound yet. Nevertheless, these comments had little to no impact on the shared currency’s performance against its rivals.
On the other hand, the data from the US showed Durable Goods Orders in the US surged by 11.2% in July. Although the initial market reaction allowed the US Dollar Index (DXY) to climb to daily highs 93.36, the upbeat performance of Wall Street’s main indexes dampened the demand for safe-haven USD. As of writing, the S&P 500 was at a fresh record-high of 3,472 and the DXY was losing 0.12% at 92.90.
On Thursday, the US Bureau of Economic Analysis will release the second estimate for the second-quarter Gross Domestic Product. More importantly, FOMC Chairman Jerome Powell will speak on the policy framework review in his opening remarks at the Jackson Hole SYmposium at 1410 GMT.
Technical levels to watch for
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