EUR/USD grinds sideways as markets pivot to face Fed rate call
EUR/USD churned chart paper near the familiar 1.1300 handle to kick off a fresh trading week. The Fiber has been stuck in a choppy consolidation phase as Euro traders struggle to kick off a new push in either direction.
European data remains limited this week: final Purchasing Managers Index (PMI) data due this week is unlikely to produce any surprises, and pan-European Retail Sales figures due early Wednesday are already expected to disappoint markets, poisoning the water supply and leaving Fiber traders to focus on this week’s key Federal Reserve (Fed) rate call.
The Fed is widely anticipated to maintain interest rates steady for now, a decision likely to provoke further criticism from the Trump administration, which is fiercely trying to coax early rate cuts from Fed Chair Jerome Powell. Labor and inflation data appear mostly balanced, but the erratic and unclear trade policies from the White House undermine its own chances for rate cuts, as the Fed remains dedicated to its goal of controlling unemployment and price fluctuations.
Even though the Fed’s rate hold seems almost certain this week, Fed Chair Powell’s remarks will carry added significance for investors after the Fed’s announcement on Wednesday. Market participants are still looking for indications of a shift towards a new rate-cutting cycle, and traders will be on the lookout for any hints of dovishness from Fed officials.
Source : Fxstreet
