July 27, 2022 03:55 AM ET
By: AnalysisWatch
After the pair bottomed near the 1.0100 zone in the first half of the week, buying interest in EUR/USD seems to be picking up amid a downward correction in the greenback.
The pair will be under pressure in the coming hours ahead of the important FOMC meeting due later in the NA session. The Fed is expected to further normalize its monetary conditions by raising rates by 75 basis points.
Turning to domestic data, consumer confidence in Germany, as measured by GfK, deteriorated to 30.6 in August, while consumer confidence in France followed suit after falling to 80 (from 82) in July.
Later in the session, Italian consumer confidence is scheduled to be released, followed by data from the United States, including MBA mortgage applications, flash merchandise trade balance results, durable goods orders and pending home sales.
EUR/USD regains some ground after Tuesday's deep fall to the limits of the 1.0100 region.
The pair continues to trade within a range as market participants await the latest ECB announcements and remain cautious ahead of the upcoming FOMC meeting on Wednesday.
In the meantime, price action around the European currency follows increasing speculation about a likely recession in the euro area, dollar momentum, geopolitical concerns, fragmentation fears, and divergence between the Fed and the ECB.
Key events in the euro area this week: Germany GfK Consumer Confidence (Wednesday) – EMU Final Consumer Confidence, Economic Sentiment, Germany Flash Inflation Rate (Thursday) – Germany Unemployment Change, Unemployment Rate, Flash Q2 GDP, EMU Flash Inflation Rate, Advanced Q2 GDP (Friday).