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EUR/USD Slides as US Dollar Extends Recovery Ahead of PCE Data and Jackson Hole
The EUR/USD pair is correcting lower as the US Dollar extends its recovery. The pair has been trading marginally lower against the USD, extending its correction from the four-day high of 1.1711 to near 1.1655 during the European trading session.
Financial market experts believe that caution ahead of key events has offered some ground to the US Dollar, but there is no reflection of a change in trend for the currency.
Strategists at Scotiabank highlight that 'calendar and event risk this week is significant,' and argue that the backdrop creates 'the potential for some moderate gains in the USD broadly in the short run' as investors move to pare back positioning. However, they caution that the broader technical backdrop remains fragile.