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EUR/USD sheds further ground and trades close to 0.9900.Sellers remain in control of the sentiment surrounding the European currency and force EUR/USD to slip back to the vicinity of the 0.9900 neighbourhood at the beginning of the week.

EUR/USD looks to data, dollar dynamic.EUR/USD adds to the rejection from last week’s tops near 1.0100 and trades at shouting distance from the key support at 0.9900 on Monday, always on the back of the continuation of the robust bounce in the dollar.

Indeed, investors keep favouring the greenback in the current context of weakness in the risk-associated universe and in light of the upcoming FOMC gathering due on Wednesday. On the latter, the Federal Reserve is widely expected to raise the Fed Funds Target Range (FFTR) by 75 bps to 3.75%-4.00%.

Earlier in the domestic calendar Retail Sales in Germany expanded at a monthly 0.9% and contracted 0.9% in the year to September. Later, the focus of attention will be on the release of advanced Q3 GDP Growth Rate in the broader Euroland as well as preliminary inflation figures for te month of October.

What to look for around EUR

EUR/USD extends the leg lower and threatens to revisit the 0.9900 neighbourhood against the backdrop of persistence dollar strength.

In the meantime, price action around the European currency is expected to closely follow dollar dynamics, geopolitical concerns and the Fed-ECB divergence. The resurgence of speculation around a potential Fed’s pivot seems to have removed some strength from the latter, however.

Furthermore, the increasing speculation of a potential recession in the region – which looks propped up by dwindling sentiment gauges as well as an incipient slowdown in some fundamentals – adds to the fragile sentiment around the euro in the longer run.

EUR/USD holds above 0.9900 after mixed EU data

EUR/USD struggles to gather bullish momentum despite having recovered from the daily low it set near 0.9900. The data from the euro area showed that annual HICP jumped to 10.7% in October from 9.9% in September and the GDP grew at an annual rate of 2.1% in Q3.

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GBP/USD remains pressured towards 1.1550 amid cautious mood

GBP/USD is extending losses towards 1.1550 in the European session. The US dollar is seeing fresh demand, as investors turn cautious, gearing up for a critical Fed and BOE week ahead. Renewed China worries and the UK’s looming fiscal plan keep investors unnerved. 

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Gold slides to $1,635 area, over one-week low amid stronger USD

Gold drops to over a one-week low on Monday amid some follow-through USD buying interest. The risk-off impulse could limit deeper losses for the safe-haven XAU/USD ahead of the FOMC.