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Euro tracks aussie and loonie higher

Trading in the euro ended with gains on Friday, August 20, up 0.22 to 1.1701. The bears came within 2 pips of retracing to the August 19 low of 1.1666 and opted for profit taking ahead of the weekend. The trigger for closing short positions was comments from Dallas Fed President Robert Kaplan. In an interview with Fox Business, Kaplan stated that he has softened his stimulus tapering position due to the Delta strain. Previously, he wanted the Fed to start easing back on bond purchases in October. Now his opinion has changed. He pledged to closely monitor the development of the epidemiological situation. If the delta strain has a stronger than expected negative impact on GDP growth, he will favor a later reduction in QE. In the upshot, the euro recovered to 1.1705.


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