EUR/USD still flat-lining as Fed and ECB await

Generally speaking, the markets do not expect the Fed to lower interest rates at 7pm GMT this evening. The prospect of that has been underpinning the dollar versus Europe so far this week. Indeed since falling back from the highs seen on Monday (at 1.0533), the EUR/USD has been flat-lining ever since. The price action yesterday was tight, with 1.0414 to 1.0444 covering it. The Euro closed in the US last night at 1.0430. So far today it has not broken any fresh ground either. Of course there is good reason for that, as noted yesterday. We have the prospect of the Fed sitting on their hands this evening and the ECB lowering rates tomorrow. To put it mildly, that is not exactly a positive combination for the Euro. Granted things may not turn out that way, but it seems the markets are taking no chances with such an outcome. The range seen so far this morning might send you to sleep (1.0426-1.0444), but expect a wake-up call before the week is out. The EUR/USD is currently trading at 1.0433