EUR/USD unchanged around 1.1220 ahead of ECB, Fed

EUR/USD trades near Friday’s close in the 1.1220 region.
The pair is seen sidelined ahead of Thursday’s ECB event.
Fed rate cut, ECB easing remain in centre stage.

Pablo Piovano FXStreet

The shared currency remains directionless at the beginning of the week, taking EUR/USD to the 1.1220 region, close to Friday’s close.

EUR/USD focused on ECB, Fed

Following Friday’s bearish ‘outside day’ spot is now looking for direction amidst the generalized sideline theme prevailing in the global markets.

In the meantime, the pair has once again failed in the key 1.1280/90 band, where sits the 21-day SMA, sparking some selling pressure although well contained by the 1.1200 zone for the time being.

EUR is expected to remain under scrutiny this week in light of the critical ECB event on Thursday, where extra measures of monetary stimulus could be announced. In addition, preliminary PMI prints are due in Core Euroland for the current month, keeping the attention intact around the single currency.

What to look for around EUR

The inability of the pair to clear the important resistance area in 1.1280/90 has encouraged sellers to return to the markets, triggering several tests of the 1.1200 handle, albeit failing to move further south. Further out, occasional bullish attempts should be seen as a short-lived against the backdrop of renewed and increasing speculations of another wave of monetary stimulus from the European Central Bank as early as this week’s meeting, including interest rate cuts, the resumption of the QE programme and potential changes in the forward guidance.

EUR/USD levels to watch

At the moment, the pair is retreating 0.06% at 1.1213 and faces immediate contention at 1.1193 (monthly low Jul.9) followed by 1.1181 (low Jun.18) and finally 1.1106 (2019 low May 23). On the upside, a breakout of 1.1286 (high Jul.11) would target 1.1315 (200-day SMA) en route to 1.1412 (high Jun.25).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold rebounds to near $3,900 as Fed hike bets cap upside

Gold price edges at the start of a new week, reclaiming $3,900 during the Asian session and reversing a part of Friday's heavy losses to its lowest level since October 2025. The upside potential, however, seems limited as elevated oil prices and inflation concerns keep Fed rate hike bets firmly on the table.

Zcash rebounds as ZODL founder now supports ending community grants

Zcash (ZEC) shows signs of recovery on Monday, extending gains above $1,250 as the Zcash Open Development Lab (ZODL) founder, Josh Swihart, now supports the compromise proposal to end the 8% block reward share directed to Zcash Community Grants (ZCG).

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.