EUR/USD today: the euro strengthens on the restraint of the American dollar

The EUR/USD pair is trading with a strengthening on the general restraint of the market before the US Federal Reserve meeting, the results of which will be published on Wednesday at the end of the day. It is expected that the US Federal Reserve will reduce the key interest rate from 25 to 50 b. p. In this case, a decrease of 25 b.p.  is already taken into account by the market, and the general restraint of trades and the US dollar is due to the uncertainty of the Fed’s future monetary policy.

Events for today:

• 15:00 – the consumer price index (CPI) of Germany (m/m) will be released (July).
• 15:30 – data for the United States will be released: core price index for personal consumption expenditures (m/m) (June) and individual expenses (m/m) (June).
• 16:00 – S&P/CS Composite-20 housing cost index will be published without seasonal fluctuations (y/y) (May) USA.
• 17:00 – the US data: consumer confidence index CB (July) and index of pending sales in the real estate market (m/m) (June).

The day today is very full of statistics on the US, but it will have a limited impact on the market.

EUR/USD pair remains in the correction phase in front of significant news. Therefore, from this currency pair we can expect a moderate growth, which will be limited to resistance levels: 1.1180 and 1.1200. Also this movement will be limited. Therefore, the formation of a flat in the range from 1.1180-90 to 1.1120-00 is most likely.

Read also: “Features of trade in the Mexican peso”

Hanzenko Anton

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