EUR/USD looks depressed around 1.1200 ahead of FOMC

• EUR/USD drops further and records new 2021 low near 1.1190.
• US revised Q3 GDP came at 2.1% QoQ; Claims rose by 199K WoW.
• October’s PCE, final Consumer Sentiment comes up next.

The tenacious upside in the greenback forced EUR/USD to lose further ground and record new 16-month low at 1.1192 on Wednesday.

EUR/USD remains offered ahead of FOMC

In the meantime, the selloff in EUR/USD remains everything but abated, down for the third week in a row and navigating the negative territory for the fourth straight month so far.

Indeed, the Fed-ECB policy divergence continues to lend wings to the buck and pushes the US Dollar Index to new cycle peaks in levels just shy of the round level at 97.00, while higher US yields across the curve also add to the indefatigable upside moment in the dollar.

In the docket, earlier figures from the IFO survey in Germany saw the Business Climate easing to 96.5 in November, which has also put the pair under extra pressure. In the US, MBA Mortgage Applications rose 1.8% in the week to November 19, Initial Claims rose by 199K in the week to November 20, Durable Goods Orders contracted at a monthly 0.5% in October and another revision of GDP figures now sees the economy expanding 2.1% QoQ in the July-September period.

Later in the session, inflation figures tracked by the PCE are due seconded by the final reading of the November Consumer Sentiment, all ahead of the publication of the FOMC Minutes of the November 2-3 meeting.

EUR/USD levels to watch

So far, spot is losing 0.49% at 1.1192 and faces the next up barrier at 1.1322 (10-day SMA) followed by 1.1452 (20-day SMA) and finally 1.1464 (weekly high Nov.15). On the other hand, a break below 1.1186 (2021 low Nov.24) would target 1.1185 (monthly low Jul.1 2020) en route to 1.1168 (low Jun.19 2020).