EURUSD:
EUR/USD is trading around 1.16–1.17, holding its ground ahead of the U.S. Federal Reserve’s rate decision. Markets are pricing a 25 bps rate cut, and attention is centered on the press conference tone and the assessment of U.S. inflation dynamics. While the dollar sees mild intraday support into the event, the combined effect of an easing step and a higher probability of additional accommodation into December underpins the euro against the dollar.
From the Eurozone, signals are moderately stable. The ECB’s recent survey readings on inflation expectations do not argue for immediate tightening, while the latest prints on business activity and sentiment point to gradual stabilization. This removes some pressure from the euro and helps EUR/USD hover near 1.1650, in line with this week’s market commentary.
Short-term volatility risks remain tied to geopolitics and the U.S.–China trade agenda. Any hints of reduced tensions typically curb safe-haven demand for the dollar and aid the euro. With the Fed move largely priced, a shift in the balance of risks toward a more accommodative policy path could nudge the pair toward 1.17.
Trade recommendation: BUY 1.1635, SL 1.1615, TP 1.1690
Origin: FreshForex
