|

EUR/USD holds firm as Fed and ECB decisions loom

  • The Euro trades steady against the US Dollar as investors await the Fed and ECB policy decisions this week.
  • Markets widely expect the Fed to deliver another 25-basis-point cut, while the ECB is seen holding rates steady.
  • The technical setup continues to favor sellers, with the pair capped below clustered moving averages.

The Euro (EUR) is treading water against the US Dollar (USD) on Monday, as investors stay cautious ahead of this week’s twin central bank decisions from the Federal Reserve (Fed) and the European Central Bank (ECB).

At the time of writing, EUR/USD is hovering around 1.1639 during the American trading hours, while the US Dollar Index (DXY), which tracks the Greenback’s performance against six major peers, is trading under mild pressure near 98.88.

Traders are positioning defensively as they await policy clues from both sides of the Atlantic. The Fed begins its two-day Federal Open Market Committee (FOMC) meeting on Tuesday, with markets almost certain the central bank will deliver another 25-basis-point (bps) interest rate cut this week, following September’s so-called “risk-management” move. Expectations for further easing strengthened after softer-than-expected US inflation data last week.

According to the CME FedWatch Tool, traders now assign a 96.7% probability of a quarter-point rate cut at the October 29-30 meeting, as officials respond to cooling inflation data and signs of a softening labor market, even though price pressure remains above the Fed’s 2% target.

In contrast, the ECB is widely expected to keep its benchmark rate unchanged at 2.00% for a third consecutive meeting, as policymakers assess recent signs of improvement in Eurozone business activity and stabilizing inflation. Eurozone inflation remains broadly stable around the ECB’s 2% target, reinforcing expectations that the central bank will leave rates unchanged on Thursday.

From a technical perspective, EUR/USD remains confined within a descending channel, with price action subdued ahead of Fed and ECB interest rate decisions this week. The pair trades below key moving averages, as the 21, 50 and 100-day Simple Moving Averages (SMAs) cluster between 1.1650 and 1.1690, forming a strong resistance zone.

On the downside, support sits near 1.1600, followed by 1.1550, while the Relative Strength Index (RSI) sits at 47, signaling limited upside momentum. A sustained move above the 50-day SMA near 1.1690 would be needed to shift the short-term bias in favor of the bulls.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.07%-0.17%0.11%0.00%-0.64%-0.26%0.02%
EUR0.07%-0.07%0.20%0.08%-0.54%-0.19%0.14%
GBP0.17%0.07%0.27%0.16%-0.47%-0.12%0.20%
JPY-0.11%-0.20%-0.27%-0.11%-0.76%-0.36%-0.07%
CAD-0.00%-0.08%-0.16%0.11%-0.64%-0.26%0.06%
AUD0.64%0.54%0.47%0.76%0.64%0.36%0.68%
NZD0.26%0.19%0.12%0.36%0.26%-0.36%0.30%
CHF-0.02%-0.14%-0.20%0.07%-0.06%-0.68%-0.30%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

More from Vishal Chaturvedi
Share:

Editor's Picks

GBP/USD fails to reclaim 1.3200 as focus shifts to US data

GBP/USD loses its traction and declines toward 1.3150 following a short-lasting recovery attempt to the 1.3200 region in the early European session. The potential upside for the pair appear limited amid UK political instability and rising expectations of US interest rate hikes this year. Traders await the US May PCE inflation data on Thursday for a clear direction.

EUR/USD drops below 1.1350 ahead of US PCE inflation

EUR/USD struggles to stage a rebound and trades in negative territory below 1.1350 on Thursday. The cautious market stance helps the US Dollar holds its ground and weighs on the pair as market focus shifts to US PCE inflation report for May.

Gold struggles to stabilize above $4,000

Gold stays on the back foot after suffering heavy losses on Wednesday and trades below $4,000 on Thursday. The commodity sticks to its bearish bias for the third straight day, and remains close to the lowest level since November 2025, touched on Wednesday, as traders await the crucial US inflation data.

Bitcoin tests $60,000 as whales sell off – Aave and Jupiter show resilience

The broader cryptocurrency market remains under intense selling pressure, with Bitcoin back at $60,000 for the third time this year. On-chain data shows selling pressure from large-wallet investors, commonly referred to as whales, while total liquidations hit nearly $1 billion in 24 hours.

Bitcoin nears make-or-break level ahead of US PCE data

Bitcoin recovers slightly, trading at $61,700 after reaching a new yearly low of $59,103 and a 21-month low the previous day. This bearish price action is supported by the ongoing institutional sell-off, which recorded an outflow of over $469 million on Wednesday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.