Traders in Europe as a whole are already leaving the political risk in Italy aside. Price's action has remained relatively weak for almost a week. The price just rebounds from the area at 1.0646 and meets the resistance at 1.11039, forming a short term range. Currently, the price is stuck at 1.1000 and there is no clear direction yet. In this case, both bulls and bears are prepared and positioned for tomorrow's PMI data from the Eurozone. The data will be key to the currency risk profile, the background and the political crisis in Italy.
If PMI data show a permanent deterioration in economic conditions, it will weigh on the euro. Markets will interpret it as an urgent intervention by the ECB on the introduction of incentives in September. A possible drop in price would bring the euro to levels at 1.10646 before the bears attack 1.10500.
Today we expect FOMC at 9:00 pm and Friday's statement by Jerome Powell at Jackson Hole.
Alternatively, in the case of surprisingly positive data, EUR / USD will move out of the north north, moving to levels of 1.11348.
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