EUR/USD: Risks skewed to downside from ECB and Fed policy updates.

The EUR corrected modestly lower against the USD over the past week. Economists at MUFG Bank analyze EUR/USD outlook ahead of ECB and Fed policy updates.Higher trading range to hold

We continue to believe that EUR/USD has moved into a new higher trading range between 1.1000 and 1.1500.

On balance, we believe that risks for the pair are skewed to the downside in the week ahead from the ECB and Fed’s policy updates. Assuming that the Fed does not signal that next week’s hike is the last in the cycle and the ECB does not strongly commit to one more hike later this year. However, support at 1.1000 should hold and provide an opportunity to build long positioning in anticipation of a move toward the top of the range in the coming months.

EUR/USD stays pressured below 1.1100 after dismal German and Eurozone PMIs

EUR/USD is trading under pressure below 1.1100 in the European session on Monday. The downbeat German and Eurozone PMIs data for July revealed a contraction in the private sector’s business activity. US PMIs next in focus.

EUR/USD News

GBP/USD declines below 1.2850 after disappointing UK PMIs

GBP/USD is holding lower ground below 1.2850 after the UK Services PMI missed estimates with 51.1 in July. The manufacturing gauge also fell short of expectations. Traders stay on tenterhooks ahead of the key Fed rate decision. US S&P Global preliminary PMIs awaited.

GBP/USD News

Gold price stabilizes as Fed likely to resume interest-rate hiking cycle in July

Gold price trades directionless around $1,960.00 as investors await Fed policy for further guidance. One more interest- rate hike from the Fed is widely expected to return the United States’ stubborn inflation to 2%.