EUR/USD drops below 1.1800 as USD gathers strength ahead of FOMC

  • EUR/USD came under modest bearish pressure in the American session.
  • Rising US Treasury bond yields help USD outperform its rivals.
  • FOMC will release its Monetary Policy Statement at 1800 GMT.

After rising to a daily high of 1.1830, the EUR/USD pair lost its traction in the early American session and was last seen losing 0.2% at 1.1790.

DXY stays in the positive territory above 92.60

The renewed USD strength is in the second half of the day is causing EUR/USD to edge lower. Ahead of the FOMC's policy announcements, recovering US Treasury bond yields are helping the greenback attract investors. Currently, the benchmark 10-year US Treasury bond yield is up 1.1% on the day at 1.2560 and the US Dollar Index (DXY) is up 0.2% at 92.66.

The only data from the US showed earlier in the day that the international trade deficit widened to $91.2 billion in June from $89.2 billion in May. Nevertheless, this print failed to trigger a noticeable market reaction.

Investors will look for fresh clues regarding the timing of asset tapering in the Fed's Monetary Policy Statement, which will be released at 1800 GMT.

Previewing the FOMC's July meeting, FXStreet analyst Yohay Elam said the Fed is expected to hold firm with its bond-buying scheme and push back against any imminent tightening. "The lack of action by the Fed does not mean stability in currency markets – printing more dollars for longer means a weaker greenback," Elam added.

Federal Reserve Preview: Three reasons why Powell could pause, pummeling the dollar.

Technical levels to watch for


Today last price 1.1791
Today Daily Change -0.0026
Today Daily Change % -0.22
Today daily open 1.1817
Daily SMA20 1.182
Daily SMA50 1.1987
Daily SMA100 1.1975
Daily SMA200 1.2008
Previous Daily High 1.1841
Previous Daily Low 1.177
Previous Weekly High 1.183
Previous Weekly Low 1.1752
Previous Monthly High 1.2254
Previous Monthly Low 1.1845
Daily Fibonacci 38.2% 1.1814
Daily Fibonacci 61.8% 1.1797
Daily Pivot Point S1 1.1778
Daily Pivot Point S2 1.1738
Daily Pivot Point S3 1.1707
Daily Pivot Point R1 1.1849
Daily Pivot Point R2 1.1881
Daily Pivot Point R3 1.192



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD licks its wounds ahead of US consumer confidence

EUR/USD is below 1.18 but off the lows. The dollar is paring some of its gains ahead of US Consumer Confidence, final eurozone inflation data and expiry of options on Wall Street. 


GBP/USD struggles around 1.38 after weak US Retail Sales

GBP/USD is on the back foot around 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


Gold attempts to rebound from multi-week around $1,750

Gold prices heading toward a second weekly losses on Friday. After observing a single-day big fall in the overnight session, prices experience some stabilization near $1,750. A slight downtick in the US dollar backs the recent consolidation in the prices.

Gold News

Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more