Good data on sentiment in Germany's business sector once again provided support to the European currency, which was accelerated to new monthly highs paired with the US dollar.

The view that the Fed will express concern over low inflation at the meeting tomorrow also supports risky assets, which continue to strengthen against the US dollar.

It should be noted that in June this year, inflation in the US was 1.6%, which was below market expectations and the forecast of the central bank. The slowdown in economic growth may also affect the further dynamics of interest rates in the United States.

In the morning, data was released that showed that the sentiment index in business sector in Germany rose again in July this year. According to the Ifo Institute, the sentiment index in the business sector in Germany rose to 116.0 points against the June's reading of 115.2 points. Economists had expected the index to drop slightly to 114.9 points. According to Ifo forecast, in 2017 Germany's GDP will grow by 1.8%.

The index of sales in retail chains of the USA for the week from July 16 to July 22, according to The Retail Economist and Goldman Sachs, rose by 0.1% compared to the previous week. Compared to the same period last year, sales in the US retail stores grew by 2.2%, but this data did not significantly support the US dollar.

According to the Redbook, retail sales in the US for the week from July 16 to 22 increased by 2.1% compared to the same period in 2016. For the first three weeks of July, sales decreased by 1.3% compared to the same period last month and increased by 2.2% compared to last year.

In the second half of the day came the data on the index of consumer confidence from the Conference Board. Given that the results have seriously surpassed the forecasts of economists, the larger growth of the European currency did not happen.

According to the report, the consumer confidence index in the US for the July of this year is rising again, reaching a new high level of 121.1 points against 117.3 points in June.

The current conditions in the US for July, this year also updated the maximum, reaching a level of 147.8 points against 143.9 points in June.

From a technical point of view, the EURUSD pair continues its upward movement. Breakthrough of 1.1670 led to the removal of stop orders and the further strengthening of the trading instrument in the area of new monthly highs of 1.1710. The key target for today is the level of 1.1760.