The euro today alternated between gains and losses against the US dollar swinging wildly between gains and losses ahead of Jerome Powell speech. The EUR/USD currency pair spiked higher and then crashed lower during the Fed Chair’s speech creating uncertain trading conditions for most traders.
The EUR/USD currency pair today spiked to a high of 1.1901 during the Jackson Hole speech before crashing to a low of 1.1762 and was within the range at the time of writing.
The currency pair traded bearishly earlier today before the Jackson Hole symposium speeches as investors expected a more hawkish Fed speech that would boost the dollar. The release of the upbeat French manufacturing business climate index by Insee had a muted impact on the pair. The mixed Italian industrial sales and orders report for June released by Istat also had a minimal effect on the single currency. Lastly, the euro area M3 money supply report released by the European Central Bank barely moved the pair, which was trading sideways.
The pair later fell then rallied higher on the downbeat US Q2 GDP data released by the Bureau of Economic Analysis early in the American session. The pair later spiked to its daily highs and lows during Jerome Powell’s speech and was still within the range at the time of writing.
The Currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area and US releases.
The EUR/USD currency pair was trading at 1.1816 as at 17:45 GMT, having fallen from a high of 1.1901. The EUR/JPY currency pair was trading at 125.98, having rallied from a low of 125.14.
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Euro Swings Between Gains and Losses on Powellâs Speech
