EUR/USD dropped as the US Dollar returned to dominating the scene amid the ongoing Italian drama. What’s next? The ECB Meeting Minutes stand out. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.
The Italian government officially agreed on a budget deficit of 2.4%, above the EU request of 2%. They tried to sweeten it by promising lower deficits in 2020 and 2021. The verdict from the Commission still awaits. The US Dollar jumped thanks to upbeat data, yields that jumped above 3.20%, and Fed Chair Powell’s hawkish words: he is open to setting interest rates above inflation: tight monetary policy. The NFP missed expectations with 134K but it was countered by an upwards revision and OK wage growth. Euro-zone data disappointed with unimpressive PMI’s and a drop in retail sales.
Updates:
EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
