EUR/USD Price Forecast: A bullish comeback seems underway
EUR/USD jumped on Wednesday after the Federal Reserve left interest rates unchanged, prompting traders to unwind the tightening that had been priced into the front end of the US rates curve ahead of the decision. The resulting decline helped the pair break above the minor downtrend it had been trading beneath since the middle of July.
EUR/USD enters the final days of the month with both sides of its monthly range now tested, leaving the pair at a pivotal technical crossroads ahead of today's FOMC rate decision. The broader downtrend remains intact, but the weekly and monthly opening ranges continue to hold just above critical support as traders await a decisive catalyst.
Euro: Options signal downside risk against US Dollar – Scotiabank
Scotiabank analysts warn that options markets are pricing greater protection against Euro exchange rate weakness, while ING sees scope for EUR/USD to revisit 1.15 after the Fed. The Euro to Dollar (EUR/USD) exchange rate traded around 1.1390 on Wednesday, holding within an unusually narrow range as markets waited for the Federal.
EUR/USD Price Forecast: Struggling below 1.1400 with all eyes on the Fed
Euro: Seen back toward 1.15 against US Dollar – ING
The dollar's next move hinges on tonight's Fed decision, and this time markets genuinely don't know what to expect. While economists still lean toward a hold—with CME FedWatch odds sitting near 68.5% for no change—Kevin Warsh's hawkish rhetoric on having “no tolerance” for inflation, paired with growing internal FOMC support for a hike, has pushed hike odds up sharply from just 18% two weeks ago to over 30% today.
Euro: Softer Fed signals may lift EUR against US Dollar – Commerzbank
Euro edges higher against US Dollar, focus is on Fed's policy
Euro: Softer Fed signals may lift EUR against US Dollar - Commerzbank
The U.S. dollar, EUR/USD and GBP/USD are in focus on Fed Decision Day as investors await the Fed's policy statement and Chair Kevin Warsh's guidance.