EUR/USD Under Pressure Ahead of Fed Meeting
The EUR/USD currency pair is entering its final week of July at 1.1369, still near monthly lows recorded in late June.
A modest decline in energy prices last Friday reduced expectations that the Federal Reserve could raise rates as early as this week's meeting, scheduled for Tuesday and Wednesday.
However, markets continue to price in at least one Fed rate hike before the end of the year, and strong US economic data is providing additional support for the dollar.
The US-Iran conflict has escalated again, leading to restrictions on energy tankers in the Persian Gulf and Red Sea, which have pushed oil and fuel prices higher and increased inflation risks.
Techincal analysis suggests that the pair may see a temporary corrective move towards 1.1420 before resuming its downward trend towards 1.1313.