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Sep 23 - 11:55 AM

EUR/USD - COMMENT-Data Ignored, It's All About The Fed For EUR/USD

By Christopher Romano  —  Sep 23 - 10:15 AM

EUR/USD struck a fresh 20-year low Friday and lower levels seem likely as investors seem to be ignoring data that would weaken the dollar and are instead focused solely on the Fed.

September U.S. S&P Global PMI indicated subdued economic activitynZON006ER3.
The prices charged component hit its lowest since January 2021 while the employment index dropped to levels not seen since December 2021.

The data would normally lead investors to sell the dollar on the prospect the Fed would have to take a less hawkish stance.
A counter-intuitive reaction ensued however as the dollar rallied and rates EDH3, US2YT=RR lifted after the data.

EUR/USD's post-data price action should concern those looking for a rally.
Most investors still flock to the dollar as the Fed's hiking path seems cemented and risk continues to sour drastically.

Technicals highlight downside risks.
Daily and monthly RSIs are oversold but are not diverging, which indicates downside momentum remains.

EUR/USD bears have the confidence to push the pair to structural support in the 0.9600 area.

For more click on FXBUZ


Source:
Refinitiv IFR Research/Market Commentary

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