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EUR/USD consolidates around 1.1320

FXStreet (Mumbai) - The buying interest in the EUR/USD> remains intact, although the spot is trading in the sideways manner around 1.1320 ahead of the US session.

All Eyes on Fed, US data could be ignored

Investors prefer to stay on the sidelines ahead of the much anticipated
FOMC rate decision due later today. The event is likely to overshadow the US weekly jobless claims report and the monthly housing reports due ahead of the FOMC event.

The equity markets too could remain mute heading into the FOMC event, providing very little or no trading cues to the FX markets. The market consensus today points to a hawkish Fed tone with a hint at a rate hike in the near future.

EUR/USD Technical Levels

The immediate resistance is located at 1.1332 (Sep 1 high), above which the pair could target 1.1373 (Sep 14 high). On the other hand, support is seen at 1.1283 (Sep 14 low) and 1.1228 (200-DMA).

FOMC day: Embrace for some serious volatility in today’s session – Investec

Research Team at Investec, note that at present there is only a slim chance of an interest rate increase priced in. However what that does mean is that whatever the outcome there is likely to be some volatility, although the Fed’s accompanying statement is likely to be designed to temper any volatility bought about by their decision.
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US inflation: Final nail in the coffin for Fed – Swissquote

Arnaud Masset, Market Analyst at Swissquote, suggests that the yesterday’s US inflation report has put the final nail in the coffin for interest rate hike in September.
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