Lagarde's remarks boosting Euro's value
Lagarde: Central Bank to adjust interest rates higher
Lagarde's Jackson Hole remarks boosted the euro against most currencies
The euro rose against the US dollar to 1.0820
ECB to use data for monetary policy decisions
Significant economic events impacting the Euro's movements
The euro has recently demonstrated consecutive gains against the majority of major currencies, driven by remarks made by European Central Bank president Christine Lagarde at the Jackson Hole Forum.
Lagarde announced that the central bank stands prepared to adjust interest rates as necessary, with the intention of raising them if required. This commitment will remain in effect until inflation returns to the bank's targeted levels.
Furthermore, Lagarde underscored the vital role of central banks in supporting economies while ensuring price stability within their respective mandates. She acknowledged that in the event of reduced global supply, including in the labor market, and a decline in global competition, prices are anticipated to have a more significant influence on adjustments.
Additionally, Joachim Nagel, a distinguished member of the European Central Bank and President of the Bundesbank, highlighted the central bank's data-driven approach in formulating decisions regarding monetary policy measures.
The euro embarked on the week with a modest upswing against the US dollar, hovering around the 1.0822 level.
Key pivotal and technical levels influencing the EURUSD movements
The EUR/USD pair retraced to test the lower boundary of the ascending channel, aligning with the 1.0770 level. Despite this, it managed a slight rebound to 1.0820 from the level.
Should the pair effectively sustain its upward momentum and surpass the resistance at 1.0870, it has the potential to contribute to further gains, potentially advancing towards the 1.0920 level. A breakthrough beyond this point could lead to sustained upward movement, with an eye on the 1.1050 level.
On the contrary, if the pair experiences a decline that results in breaking below the support situated at 1.0770, this action might trigger supplementary downward pressure, potentially testing the support level at 1.0640.