Introduction:
The EUR/USD currency pair has had a tough week, with trading activity remaining range-bound due to a lack of fundamental drivers. Despite hawkish Fed speak, the US dollar has been trading sideways all week. This article will discuss the recent trading activity of the EUR/USD currency pair, look ahead to the upcoming FOMC meeting, and discuss the latest CME Fed Fund probabilities.
EUR/USD Trading Activity:
The EUR/USD currency pair has remained range-bound this week, with Monday’s 90-pip range keeping the market in check. A lack of fundamental drivers has not helped, and with little in the way of data today, the week looks like it will close out fairly close to where it opened on Monday. The US dollar has been kept in check and has basically traded sideways all week, despite hawkish Fed speak threatening to push the greenback higher.
Upcoming FOMC Meeting:
Federal board members will enter a blackout period from Monday next week ahead of the FOMC meeting on May 3rd. The latest CME Fed Fund probabilities point to one more 25 basis point hike before the central bank stands pat for three meetings. At the start of Q4, the Federal Reserve is expected to start cutting interest rates.
Conclusion:
In conclusion, the EUR/USD currency pair has remained range-bound this week due to a lack of fundamental drivers. Despite hawkish Fed speak, the US dollar has traded sideways all week. Federal board members will enter a blackout period from Monday next week ahead of the FOMC meeting on May 3rd. The latest CME Fed Fund probabilities point to one more 25 basis point hike before the central bank stands pat for three meetings. At the start of Q4, the Federal Reserve is expected to start cutting interest rates
