EUR/USD inter-markets: looking to Yellen for direction

EUR/USD has regained attention once again today, as the renewed selling pressure around the greenback has lifted spot to the boundaries of 1.1300 the figure, extending at the same time the bounce off yesterday’s lows in the 1.1240 region.

USD-dynamics remain the exclusive driver for the pair’s price action for the time being, while cautiousness is expected to gather traction amongst traders as we get closer to the speech by Janet Yellen at the Jackson Hole Symposium on Friday.

Yields in German Bunds remain on a firm footing today, narrowing the spread differential with their US peers and thus lending extra support to the ongoing EUR up move.

Collaborating with the upside in the pair, volatility tracked by VIX has edged higher above 13%, while Fed Funds futures prices keeps the upside bias unchanged.

EUR/USD faces the next hurdle around the mid-1.1300s, where sit the base of the 8-month rising channel and a retracement of the May-June drop. Once cleared, the next resistance aligns at 1.1367, August’s high.