EUR/USD edges lower snapping a three day winning run, German IFO business climate & US durable goods in focus. Gold sits between its 50 & 200 day ma with attention on US data ahead of Jackson Hole Symposium starting tomorrow.
EUR/USD slips with IFO business climate & US durable goods
EUR/USD is edging lower, snapping a three day winning run amid a cautious mood in the market (FXE, UUP).
COVID concerns and indecision over what the Fed could say at this week’s Jackson Hole Symposium is boosting safe haven flows into the greenback.
COVID numbers in Europe are rising as are hospitalizations in France and Italy.
Looking ahead German IFO business climate is expected to ease lower to 100.4 in August from 100.8 in July. The Expectations component is also expected to tick lower to 100 from 101.2.
US durable goods are expected to decline -0.3% after gaining 0.9% in the previous month. A weaker number could support the odds of easier monetary policy for longer.
Gold looks to US durable goods orders
Gold failed to build on Monday’s surge higher and is falling for a second straight session (GLD).
A broad rebound in the US Dollar on safe haven flows amid rising COVID delta concerns and a pause in the Chinese tech stock rebound is dragging on demand for the dollar denominated greenback.
Attention will turn to US durable goods data. A weaker than forecast reading could further cool Fed tapering expectations ahead of the Jackson Hole Symposium on Thursday and Friday.
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