Can USD Make a Comeback This Week?
Last week, we saw the dollar generally showing a softer tone against both the euro and sterling. Despite the US payrolls figure for August making a surprise downside miss, there was a relatively mild reaction from the dollar on Friday (in the immediate aftermath EUR/USD briefly touched the $1.19 level).
As we start this week, the aforementioned softer tone to the dollar is reflected in EUR/USD trading at $1.18-1.19. GBP/USD is trading near to the midpoint of $1.38-1.30, EUR/GBP continues its stubborn position, trading in a very narrow range just below the 86p mark.
Looking ahead to this week, there is a very sparse data calendar. With this, the ECB meeting will be the main focus for markets. Given recent remarks from key ECB officials regarding a reduction in the monthly rate of purchases under the PEPP, the meeting could offer some risk for the euro.