EUR/USD Price, Chart, and Analysis
- US dollar[1] short-term strength weighs down on EUR/USD[2].
- The ECB meeting will include the latest growth and inflation forecasts.
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The US dollar keeps pushing higher with the greenback now on course to challenge short-term resistance just 10 ticks away. The double top around 92.80 on the daily DXY is unlikely to stop further upside in the dollar basket but may act as a short-term brake in the coming sessions. The US dollar’s rebound post last Friday’s US Jobs Report has been strong although the move was helped by the oversold nature of the US dollar going into the release. This dollar strength is currently seen across a variety of USD[4]-pairs, including EUR[5]/USD.
US Dollar Index (DXY) Daily Price ChartSeptember 7, 2021
Thursday’s ECB monetary policy meeting will also include the closely-watched quarterly growth and inflation projections for the months ahead. It is thought that GDP projections may be nudged higher while the inflation outlook will stay around current forecasts, despite price pressures hitting a 10-year high recently. The central bank is set to look through current inflation levels, deeming them transitory, although fears that they soon may roll over into higher wage demands may see the ECB issue a note of caution.
The staff projections aside, the main area of interest tomorrow will be on the central bank’s various bond-buying programs and if any adjustments will be made. The Asset Purchase Program (APP) is set to be left untouched, while the Pandemic Emergency Purchase Program (PEPP) may see the rate of bond buying lowered via a technical adjustment. Recent commentary from several ECB
