It's all about the consumers. After slowing core inflation and sharp deterioration in sentiment, Dollar took a steep dive towards the end of the week. Markets are suddenly less sure about a tapering announcement by Fed in September, not to mention anything concrete from Jackson Hole symposium later in the week. The greenback ended the week only slightly between than Sterling and Swiss Franc. The development suggests more downside in Dollar for the initial part of this week at least.

On the other hand, Yen rebounded strongly following the slide in treasury yields, even though US stocks extended the record runs. New Zealand Dollar follows as the second best, awaiting RBNZ rate hike this week. Canadian Dollar was the third winner. Euro and Aussie ended the week mixed.

EUR/USD Weekly Outlook

EUR/USD's late rebound last week suggests short term bottoming at 1.1705, on bullish convergence condition in 4 hour MACD. That also came just ahead of 1.1602/1703 key support zone. Initial bias is now on the upside this week for 1.1907 resistance first. Decisive break there will suggest that fall from 1.2265, as well as consolidation pattern from 1.2348, have completed. Near term outlook will be turned bullish for retesting 1.2265/2348 resistance zone. However, below 1.1705 will turn focus back to 1.1602/1703 key support zone again.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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