The dollar climbed to a three-week peak against the euro last week, buoyed by expectations that the US Federal Reserve, fresh from its recent rate increase, would tighten monetary policy again in September. Those expectations have since been tempered as key US economic data printed below forecasts. Highlighting the Central Bank's struggle, St. Louis Fed President James Bullard remarked on Friday that policymakers should wait on any further rate increases until inflation reliably heads towards the 2.00% mark.
Data on tap this week include June consumer confidence, a final reading of first quarter GDP along with pending home sales. In the meantime, EURUSD was last seen around the 1.11900-mark, with 1.1200 representing the key resistance level on the upside. If the pair breaks above, traders can expect additional weakness in the greenback to push EURUSD back towards mid-June highs.
Dollar Extends Losing Streak
Daily Analysis - 26/06/2017