EUR/USD recovers from a fresh weekly low of 1.1811

The EUR/USD pair is recovering modestly from a fresh weekly low of 1.1811. Remarkably, the recovery came as demand for the U.S. dollar paused. A dismal market’s mood keeps the dollar up against most of its major rivals. The ongoing recovery is due to European indexes trimming large losses from earlier in the day, weighing on U.S. futures.
Significantly, the European Central Bank (ECB) announcement on monetary policy looms. Therefore, investors may move away from the pair. The European Central Bank (ECB) is having a monetary policy meeting. The outcome will be published on Thursday, September 9. The market is now waiting for clues on whether policymakers are ready to trim its ultra-loose monetary policy and upward revisions to growth and inflation forecasts.
Remarkably, the U.S. is due to publish minor data, such as the IBD/TIPP Economic Optimism for September, previously at 53.6, and Jolts Job Openings for July, foreseen at 10 million.
The EUR/USD pair is flat at Sydney’s trade, trading close to 1.1850 and between 1.1840 and 1.1846.
The week is about to pick up as the central banks are taking the spotlight at the start of a new quarter.
 

The market is waiting for meetings of the Reserve Bank of Australia, the Bank of Canada, and the ECB 

The Reserve Bank of Australia (RBA) met in the previous session. Meanwhile, the Bank of Canada meets today, and the much-awaited European Central bank meets on Thursday.
Meanwhile, the market focuses on speeches from the Federal Reserve members, the Bank of England, and RBA officials.
Moreover, the RBA’s decision not to walk back its timeline for tapering yesterday caused the volatility that drove a sell-off in the Australian dollar.
The board members are concerned about the Delta strain spreading and subsequent lockdown extensions. Hence the RBA QE purchases are now running at A$4bn/week from September onwards. Remarkably, it stood at A$5bn/week.
Because of the poorer-than-expected economic outlook, the RBA decided to hold the reduced QE pace of A$4bn/week until mid-February 2022 instead of their earlier November 2021 review.
Meanwhile, the Bank of Canada shouldn’t change policy or forward guidance.
European Central Bank is debating a cut in stimulus at its meeting on September 9.
Notably, analysts expect purchases under the ECB’s Pandemic Emergency Purchase Programme (PEPP) to decline possibly to 60 billion euros a month from the current 80 billion, which would be considered a de-facto taper.