FX Rundown: August 19th, 2019
Fundamentals: The Euro secured its fifth straight losing session after Eurozone CPI was soft and the German Bundesbank warned of a recession in its latest Monthly Report this morning. Although Michigan Consumer data in the U.S missed on Friday, broadly stronger data throughout the week helped fuel the Dollar Index to the highest level since August 1st, the day after the Fed cut. Uncertainties tied to Italy and the ongoing Brexit have also dragged on the Euro of late. Today, Boston Fed President Rosengren who is known to be a hawk advised against additional rate cuts. The debate will heat up in the back half of the week as the Fed releases the Minutes from their July rate-cut meeting Wednesday and the Jackson Hole symposium kicks off Thursday with the keynote speech from Fed Chair Powell Friday.
Technicals: Price action slipped below support at 1.1201 midweek last week and has continued to slide. In fact, Friday was a new front-month settlement low by half a tick and today’s was lower. The Euro is now below key support at 1.11265-1.1149 and there does not seem to be much technically in the way between where it is now and a direct test into … Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.