Dollar continues to rise, thanks to higher yields of Treasuries ahead of the Fed's monetary policy meeting this September. Clearly, markets are driven by expectations of further rate hikes by world central banks, with the Fed having the full leadership. Most likely, it would implement a 0.75% increase, along with the ECB despite the start of recession in Europe.
At the time of writing, EUR/USD is trading near the historical low of the early 2000s. It is logical to buy as soon as the price decreases; however, there are a lot of reasons that are holding back traders from such actions. One example is the situation of the eurozone economy, which is very deplorable amid the conflict in Ukraine. Crisis is already brewing, and there is a chance that full-scale unrest will start soon.
But euro could rise a bit if the ECB raises rates by 0.75%. Then, it will move sideways ahead of the Fed meeting, nervously reacting to the decisions of the ECB and incoming economic data, as well as outlook for monetary policy. After the Fed meeting, euro will fall, which strengthens the idea to sell the pair rather than buy.
Forecasts for today:
EUR/USD
The pair is consolidating slightly above 0.9900. There is a possibility of a rebound to 0.9975, but trading will most likely be conducted sideways.
GBP/USD
The pair is trading above 1.1450. Incoming economic statistics, as well as the ECB meeting, may push it to 1.1590.