The EUR/USD has been on a losing streak for seven consecutive days. The pair was trading at 1.17635 ahead of the European Central Bank Interest Rate Decision for July.
Eurozone Inflation Concerns
The EUR/USD pair will react to the European Central Bank (ECB) monetary policy statement due on Thursday. ECB President Christine Lagarde and Vice President Luis de Guindos will explain the bank’s monetary policy decision and address journalists.
According to ECB’s monetary policy statement for June, the bank maintained its interest rates. The Governing Council expects the key ECB rates to remain at a standstill until inflation growth is stable. The Governing Council is ready to adjust all its instruments accordingly. This will ensure inflation moves towards its aims in a sustained manner.
The deposit facility rate is expected to remain at -0.50%. the Eurozone Business Consumer Confidence for July will also be released on Thursday. Analysts expect Consumer Confidence to slip 2.5%.
Eurozone’s Manufacturing Purchasing Managers’ Index (PMI) for July will be released at the end of the week. The manufacturing PMI is expected to decline to 62.5. The services PMI for July will also be released on the same day and is expected to increase to 59.5.
US Economic Concerns
The EUR/USD pair will react to the United States’ weekly Initial Jobless claims data. The initial claims are expected to come in lower at 350,000 from the previous 360,000.
The US building permits for June came in lower than expected. The permits came in at 1.598 million which was weaker than the estimated 1.700 million. The monthly Housing starts in the US came in higher at 6.3% from the previous 2.1%.
The Existing Home Sales for June are expected to come in higher at 5.90 million from the previous 5.80 million.
The Delta coronavirus variant has the markets in fear due to its rampant outbursts. Investors are worried that the virus could hamper the economic recovery as well as inflation.