• Euro drops across the board, remains under pressure.
  • US Retail Sales below expectations, attention turns to the FOMC statement.

The EUR/USD dropped further after the beginning of the American session and bottomed at 1.1808, the lowest intraday level since last Thursday. The pair then bounced modestly and ahead of the FOMC statement it is hovering around 1.1830, still under pressure but supported above 1.1800.

The slide took place amid a mixed US dollar and a weaker euro across the board. EUR/GBP is also at six days lows, testing 0.9100 while EUR/CHF fell to the lowest since late August, below 1.0750.

Economic data from the US showed an increase in retail sales but below expectations. Attention is set on the Federal Reserve. At 18:00 GMT the FOMC will announce its decisions and the new economic projections of its members. Later, Powell will present a statement and will answers questions. It is the first meeting since the Fed announced its new strategy.

The DXY found support again at 92.80 and spiked to the upside to 93.15. It is trading at 92.92, ahead of the meeting, moving sideways. The biggest loser among majors is the euro so far with the yen and the pound outperforming.

Technical levels