Saturday, August 27, 2011

EUR/USD 1,4498

Heading into the final hours of the trading this week, EUR/USD holds barely below 1.4500, recording a 0.79% gain on the day and the week.

The pair continued to seesaw back and forth inside its recent 1.4000/1.4500 range, although this week it held above 1.4300 and quoted nearer the topside, peeping briefly above 1.4500 on Friday boosted by a solid rally in US equities after Fed's Chairman stopped short of signaling further monetary stimulus in Jackson Hole.

Bernanke finally did not announce a third round of QE during his speech in Jackson Hole, but he didn't ruled it out either, shifting focus to September 2-day FOMC meeting.

Regarding the week ahead, Valeria Bednarik, chief analyst at, commented, "The return of full market volume during early September may trigger some wild movements in the cross, although I would expect the 1.40/1.45 range to hold. Neither Euro nor Dollar, will gather enough strength to define a trend anytime soon".