EURUSD is waiting for news. Overview for 22.07.2021

The major currency pair is saving strengths in anticipating the ECB July meeting. 

The Euro is consolidating against the USD on Thursday in anticipation of the news. The current quote for the instrument is 1.1800.

Attitude to risks remains quite restrained: the delta strain of the COVID-19 continues raising concerns due to its quick propagation and a possible re-introduction of social restrictions. This keeps the demand for the “greenback” as a “safe haven” asset pretty high. 

On the other hand, the US Fed continues stimulating the American economy and pumping it with money. In the long-term, it’s a factor that should put much pressure on the American currency.

Later today, the European Central Bank is going to have another meeting. The benchmark interest rate is expected to remain unchanged at zero. However, the regulator may change the tone ща its comments relating to the stimulation. And if earlier the ECB was talking about an assertive accommodation policy, then now it may change to sustainable. It means that the stimulation won’t be expanded but may remain a while longer.

It seems like the regulator’s multilevel approach to its monetary policy won’t change. In this case, the Euro may continue falling slowly as there are no other signals.