EUR/USD slips to 1.1056, its weakest level since 1 August

EUR/USD H1 23-08

The dollar is staying firm ahead of Fed chair Powell's speech in Jackson Hole later today as EUR/USD slips to a fresh three-week low now.

Technically, there isn't much stopping a move towards the 1.1027 level but I reckon markets will be more cautious awaiting for Fed rhetoric later in the day.

The euro got a bit of a reprieve yesterday after some improvement in the August PMI readings but as mentioned then, the details hardly make for good reading and we saw the single currency pull back rather quickly.

Looking ahead, Jackson Hole will continue to be the main focus and if we see Fed officials communicate a less assuring message of a rate cut in September, expect that to feed through to more dollar strength ahead of the weekend.