Euro steady awaiting Powell speech

The Euro remains virtually unchanged from yesterday’s trading session after the release of key date from the US, while the first day of the Jackson hole meeting remained relatively quiet among participants, but that is all expected to change later today when US Federal Reserve President Jerome Powell makes his long-awaited monetary speech.

GDP data from the US hit the market yesterday at 6.6% which was broadly in line with market estimations for a figure of 6.7% and the news was never going to be much of a market mover for the EUR/USD currency pair unless the figures missed expectations by a significant amount.

This is because, traders are cautious about taking new positions in the currency pair before Powell’s speech later today and we may see some of the biggest volatility in months, I as yet an undetermined direction which all depends on the stance the Fed president takes with regards to reducing or maintaining the central bank’s stimulus program.

It seems investors in the market are split 50/50 on whether Powell will announce the beginning of a tapering program before the end of the year, or for now keep the program going as the Delta corona virus variant continues to raise its ugly head.

On the Chart we can see that the Euro has drifted below the current resistance line of $1.1762 and as we enter the European trading session the EUR/USD currency pair is trying to break through this significant level.

For the bulls, it would be good to see the pair breach this critical level before the speech from Jerome Powell and if he decides to keep the stimulus program going over concerns surrounding the coronavirus, $1.1800 or more is possible for the European currency to close out the week.