Euro of to a poor start for the week

The Euro remains under pressure today against its US counterpart, following on from Friday’s steep losses and the weakness may be set to continue after another Fed board member joined calls for the US central bank to begin reducing their stimulus program

 Philadelphia Federal Reserve Bank President Patrick Harker noted during an interview yesterday, that the time has come, as the year closes out for the tapering process to begin which was introduced to boost the economy on the back of the COVID 19 pandemic

“I am supportive of moving toward a tapering process sooner rather than later. When exactly that happens, the committee needs to decide. I would hope sometime this year we would be able to start the tapering process.” Mr Harker said.

The release of consumer price index figures from the US tomorrow will show if the US population is as confident as MR Harper in the current recovery underway with regards to the US economy and a strong round a figures may spell serious trouble for the Euro.

From a technical perspective, last Friday’s break of the 50-day EMA is a very bad sign for the EUR/USD currency pair which is added to by the creation of a double top which formed at the end of July and the beginning of September.

This formation was the beginning of the latest downtrend which has so far continued for around 7 days and as we get ready to enter the European trading session, the currency pair has also taken out the critical $1.1800 support level and is currently trading at around $1.1795