EUR/USD rose 0.1% to 1.1067, just above the previous session’s low of 1.1036, a level last seen on July 12.
The European Central Bank is also widely expected to increase interest rates by a further 25 basis points when it meets on Thursday, but traders are beginning to question whether this central bank can afford another hike this year given the building evidence of an economic slowdown.
Monday’s Purchasing Managers surveys pointed to deteriorating manufacturing activity in the eurozone, while Tuesday’s German Ifo suggested business morale in the region’s most important economy deteriorated in July for the third month in a row.
Goldman Sachs on Tuesday cut its 2023 growth forecast for the eurozone, following the weaker economic activity data.
