EUR/USD: Fed set to keep rates on hold
Focus on USD today, shifts to EUR tomorrow.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big day for the US dollar as the Federal Reserve (Fed) announces its monetary policy today, and that means USD pairs could be in for volatile movement, even if the central bank has already reduced its key rate to the 0-0.25% range and initiated a string of monetary stimulus programs. But once that's done, it won't be over for EUR/USD, as the ECB (European Central Bank) will be announcing its monetary policy tomorrow and following a cut in Italy’s credit rating by Fitch to a notch above junk. And while we get a few items out of the bloc in terms of data, tomorrow's will be more closely watched given it includes preliminary CPI (Consumer Price Index), GDP (Gross Domestic Product), and employment data.
IG client* and CoT sentiment for EUR/USD
Going into today's FOMC event both retail and larger speculators according to the latest CoT (Commitment of Traders) report are holding a majority long bias, of 58% and 67% respectively.
EUR/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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