After a brief phase of consolidation, EUR/USD has come under heavy downward pressure during the European session and has fallen below 1.0200 for the first time since December 2002.
The pair has already lost almost 3% since the beginning of July. Investors are increasingly concerned about the energy crisis, which may cause the European economy to enter a recession before the end of the year. Earlier in the day, data released by Eurostat revealed that retail sales increased 0.2% in monthly terms in Maymissing market expectations of a 0.4% increase.
Although risk flows seem to have returned on Wednesday with the intervention of the Norwegian government to stop strikes in the energy sectorthe common currency is having a hard time finding demand.
Later, the US ISM Services PMI report will serve to provide further impetus. Subsequently, the US Federal Reserve will publish the minutes of the June monetary policy meeting.
EUR/USD 4 hour chart
Source: Fx Street
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