August 26, 2021
EUR/USD: The euro edged higher against the dollar on Wednesday as investors are waiting for the details on the timeline of monetary tapering from the U.S. Federal Reserve’s symposium this week. Powell’s speech at the Fed’s symposium in Wyoming, which had to be moved online because of virus-related concerns, could shed more light on the timeline for withdrawing stimulus, with some still betting on a less dovish stance. The dollar index, which measures the U.S. currency against a basket of six major trading currencies, will continue to consolidate around 93 points. Immediate resistance can be seen at 1.18. A breakout higher can trigger growth towards 1.1850.
GBP/USD: Sterling was little changed on Wednesday, lacking direction as investors waited for the Federal Reserve’s annual economic symposium on Friday to give new momentum to the dollar. Risk appetite was mixed, with riskier currencies such as the British pound supported by higher commodity prices at the start of the week. However, any gains were limited by concerns about the Delta variant of COVID-19. Market attention is focused on Friday’s Jackson Hole conference. Investors expect Chair Jerome Powell to give hints about tapering the Fed’s bond-buying program. Immediate resistance can be seen at 1.3750. A breakout up can trigger growth towards 1.38.
USD/CAD: Canadian dollar edged lower against its U.S. dollar on Wednesday, clawing back some earlier gains as oil prices slowed after a big two-day advance. Oil prices rose more than 1% for the third session of gains after U.S. data showed fuel demand climbed to its highest since the start of the pandemic. Oil prices continue to support the Canadian dollar, but this may change as concerns about the impact of covid-19 on global demand returned to the market. Immediate resistance can be seen at 1.2650. A breakout up can trigger growth towards 1.27.