Euro Resumes Decline as Eurozone Investor Confidence Deteriorates Further
Today, the financial markets are experiencing a relatively calm day, likely influenced by the fact that it was a holiday in the United States and Canada. On Friday they closed with a sudden rise in Treasury yields that caught the market’s attention, but with key markets closed today, we will have to wait until tomorrow to see whether the USD will resume last week’s decline or if it will continue Friday’s bullish reversal.
In the absence of major market catalysts, the direction of major currencies largely depended on the price action in stock markets and the overall risk sentiment. While European equities made a slight upward move, this has only had a modest impact on the US dollar, keeping it somewhat subdued during the first half of the day.
EUR/USD moved up from 1.0780 to 1.0888 during the European session, while GBP/USD inched up from 1.2610 to 1.2644. However, it’s important to note that both currency pairs are still trading below important technical levels that were breached on Friday. Specifically, the EUR/USD pair remains below its 200-day moving average at 1.0817, and the GBP/USD pair is still below its 100-day moving average at 1.2650 at the moment.
Eurozone September Investor Confidence From Sentix – 4 September 2023
- September Sentix investor confidence -21.5 points vs -20.0 points expected
- August Sentix investor confidence -18.9 points
Although, now after the negative investor confidence reading from the Eurozone, the Euro is looking down again and EUR/USD has reversed below 1.08. EUR/GBP is also looking bearish having slipped below 0.8550. We are already short on this pair and the price is approaching our take profit target.
EUR/GBP Live Chart
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