The selling pressure around the European currency gathers further steam and drags EUR/USD to 3-week lows near 1.0920 on Thursday.

EUR/USD weakens amidst USD-buying

EUR/USD resumes the weekly leg lower and approaches the 1.0920 region on the back of the continuation of the bid bias around the greenback, which motivates the USD Index (DXY) to creep towards the 102.00 neighbourhood.

In the meantime, recent hawkish comments from ECB’s rate setters failed to lend sustained legs to the pair, which has so far met a tough up-barrier near the 1.1100 mark.

Still around the ECB, Board member M. Kazaks suggested on Wednesday that a rate hike in July might not be the last one amidst the current context of still elevated inflation, an idea that falls in line with speculation of another quarter-point hike in September, which should bring the deposit rate to 4.0%.

There are no scheduled releases in the euro calendar on Thursday, leaving all the attention to the publication of Producer Prices and the usual weekly Initial Jobless Claims across the ocean.