EUR/USD still treading water as ECB policy decision looms

Yesterday evening the EUR/USD fell back in response to no change in monetary policy from the Fed. Prior to that it had peaked much earlier in the day at 1.0444. However, despite the fall back from an earlier European session high around 1.0428, the Euro did not fall below the earlier session low, at 1.0383. The rebound that followed, tracked the comments from the Fed boss, as he seemed to walk-back on the seemingly hawkish tweak in the Fed policy statement. That helped the Euro jump back above 1.0425. It later closed in the US at 1.0421. The price action so far this morning has been to the downside, as the markets eye a rate cut from the ECB later today. Naturally, if the ECB passes on that, the EUR/USD will at least have a look at the 2025 high, at 1.0533. Of course a cut in rates today is potentially priced in right now, but that is not exactly a certain assessment either. The fundamentals continue to support the Dollar and that is likely to remain the case for the time being. The scene is pretty quiet right now, but we are going to get some price action ahead of the close this evening. There will of course be much more to add here on all this today. The EUR/USD is right now trading at 1.0411