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Wednesday, August 23rd
The EUR/USD pair came out of its bearish consolidation phase in European morning and refreshed its daily highs at 1.1794, following positive preliminary German Manufacturing PMI report and slightly hawkish speech of ECB President M.Draghi. Adding to this, prevailing risk-off trend, triggered by US President D.Trump’s speech, during which he threatened to close down the government in order to get funding to build a barrier along US southern border, also supports the major currency pair this Wednesday. On the other hand, further upside of the pair looks limited, as investors refrain of placing any important directional bets ahead of Jackson Hole Symposium, which will take place this Thursday. The market is expecting that both heads of regulators will offer some hawkish signs on monetary policies, which will boost speculations over the divergence between the Fed and ECB.