Euro Dollar Rate Could Start RISING Warn Big Investment Banking Names

However, at the same time though they remain unanimous that the long-term outlook remains euro-negative. Ultimately then, it is all a question of timing.

For your reference, at the time of writing we see:

• Euro Dollar Exchange Rate (EUR/USD): @ 1.3245.
• Euro Pound Exchange Rate (EUR/GBP): @ 0.7993.
• Euro Canadian Dollar Exchange Rate (EUR/CAD): @ 1.4507.

Note that those waiting for better exchange rates should not hesistate, ensure your FX provider has the relevant buy order in place for when your rate is achieved. Likewise, if there is a threshold you are not willing to cross to the downside ensure stop-loss orders are in place. Please learn more here.

Could the euro be about to bounce?

Signs are growing that the euro sellers are starting to run out of steam and a recovery could shape up.

It is of course too early to call for a more profound upside reaction (1.3430/40) to have started but there are multiple signs gathering that we are close to such a development (post triangle low, pre-divergence, support cluster and more).

Above 1.3295 will add credibility to the notion that a rebound is shaping up, however a break below 1.3256 should encourage a new low being reached.

Credit Suisse tell us:

"While we remain fundamentally bullish on the USD and continue to like EURUSD downside, we are a bit cautious on the broad USD rally heading into today’s Jackson Hole comments, given our call for limited additional news from Fed Chair Yellen."

Credit Suisse confirm they are structurally bearish EUR and continue to look for it to move lower against USD and CAD.

European Central Bank (ECB) Will Welcome Euro Exchange Rate Weakness

We keep an eye on the ECB which has made it clear on many an occassion that they would prefer a weaker euro as a route to stimulating Eurozone exports.

BNP Paribas reckon ECB boss Mario Draghi will be welcoming the moves lower in the euro:

"At the very least we suspect Draghi will be cautious not to stand in the way of the recent depreciation in the EUR, which in the eyes of most Governing Council members probably remains preferable to QE as a means to move inflation closer to the objective."

The euro could be in for trouble say Commerzbank:

"Inflation, too, appears to be moving away from the ECB’s target. The risk that the ECB takes QE measures after all has risen further in the last few months. If Draghi so much as hints at such steps, the euro will be in for a difficult time ahead of the weekend."

Eurozone Business Activity Weakens

According to the latest data, business activity continued to weaken in August. Just like in the last few months, the more export sensitive manufacturing sector underperformed services.

"As such the latest development may continue to indicate a weakening trade-related capital flow situation," says Adam Myers, Senior FX Strategist at Crédit Agricole, "this combined with capped ECB rate expectations should keep the single currency under pressure."