Important events today:

7:30 UTC – EU: Manufacturing sector business activity index for July.

US: Ministry of Finance auctions.

In the first half of the day we should pay attention to the statistics on business activity in European industry. I expect weak data on the background of falling demand for industrial goods in many eurozone countries, which will have a negative impact on the value of the euro.

Today the U.S. Treasury Department will hold traditional Treasury bill auctions, which will reduce the surplus of dollar liquidity in the financial system and will have a positive impact on the value of the U.S. currency in the short term. On the other hand, investment funds are building up long positions in the euro, which may prevent EURUSD from showing a strong decline in quotations.

Recommendations: flat at 1.1080 -1.1175.