09.07.202012:07 Forex Analysis & Reviews: EUR/USD: The euro will depend on the results of the upcoming meeting between EU finance ministers and the election of new Eurogroup president.

Finance Ministers of the European Union will conduct a meeting today, at which a new president of the Eurogroup will most likely be elected. It will determine which direction the euro will go to, in which if the new president supports the concept of a more peaceful coexistence between the North and South of the eurozone, the risk of a split will be slightly decreased. But if the new president does not share the common views and integrity of the EU (which, of course, is unlikely), the pressure on the European currency will increase significantly.

The Eurogroup is scheduled to have a meeting today, ahead of the EU summit on July 17-18. Its results will affect the future direction of the euro in the 3rd quarter, especially since the plans for a joint fiscal program will be discussed there.

Meanwhile, a number of macroeconomic reports were published yesterday, one of which was the data on the US budget deficit. According to the report, it rose again in June this year, amounting to $ 863 billion. This catastrophic increase in US government spending will not go unnoticed in the economy. However, experts say that this does not pose a serious risk. Nevertheless, the reduction in tax revenue amid a number of benefits has led to an increase in budget deficit.

According to the data published by the US Budget Office, spending in June finally to $ 1.1 trillion, because expenditures for just one unemployment benefit was increased to $ 116 billion. At the same time, budget revenues fell by 28% and settled to $ 242 billion, due to the sharp decline in economic activity, as well as reduction in wages.

As for other news, the speech made by the president of Atlanta Fed focused on the measures needed to further stimulate economic growth. According to Raphael Bostic, the current actions of the Fed are aimed at maintaining strong fundamental indicators of the economy, and timely emergency tools have completed their task. He believes that the pandemic can be effectively managed, but the latest data featuring a surge in infections do not really say so. It seems that some fiscal support programs should be extended. Nevertheless, Bostic is confident that another lockdown is not needed, and further measures to contain the pandemic are likely to be targeted.

"As for the pace of economic recovery, the incoming data indicates its recovery, but the prospects remain extremely uncertain, and the Fed should undoubtedly consider additional support measures," Bostic said.

Meanwhile, with regards to the technical picture of the EUR/USD pair, a breakout from the level of 1.1350 will lead to a new rising wave of the trading instrument, but it needs good reasons to support it. Thus, the bullish mood may be changed, if positive news does not appear. At the same time, the continued increase in the number of COVID-19 infections is taking a toll worldwide, which is enough to return the bear market for risky assets. For this, it is enough for sellers to return the quotes to the support level of 1.1310, which will increase the pressure on the pair and push it to the lows 1.1260 and 1.1190.