EUR/USD Analysis: consolidating at July’s lows ahead of ECB

Imminent announcements incoming from the European Central Bank has kept investors on their toes as EUR/USD data will likely be overshadowed by news from authorities.

Contained at the 1.210 range, the EUR/USD closed with losses and did not succeed in attracting any new investors. 

While risk aversion sent investors to safe-haven assets, providing attention to the U.S. dollar, the euro was out of consideration as the market awaits highly-anticipated policy decisions from the European Central Bank later this week. The United States only released June’s Chicago Fed National Activity Index, which resulted in a deficit of -.02, despite expecting a .10. Moreover, no data was given from Europe for the month.

On Tuesday, July 23rd, the United States will release information in regards to the country’s housing price index for the month of May as well as existing home sales for the entire month of June. Currency statuses and changes for this week will primarily be in reference to central banks rather than typical data. According to experts in regards to the EUR/USD pair, “The risk remains skewed to the downside, as the pair developed below the 23.6% retracement of its July’s decline at 1.1245.” The pairs recent bottoming could lead to a yearly low past 1.1106. Implications for the future are unsure, given the European Central Bank’s imminent policy announcement soon.

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