Markets Range Bound as FED Meeting Awaits
Last week, once again the action on currency markets was confined to fairly tight ranges. Although the ECB meeting for July took place, it had very little impact on the Euro.
For the main pairs, EUR/USD was held in a 1.1750-1.1830 range, GBP/EUR was a little less contained, moving within 1.1530 – 1.17 with GBP/USD trading between 1.3725 – 1.3775.
Starting off today, the respective pairs have opened at $1.177 and 1.1670.
Looking ahead to this week, it’s the turn of the US Fed to hold its policy meeting but from a Dollar standpoint, it could be a nonevent asd no changes are expected.
Datawise, flash readings of the Q2 GDP from the US and Eurozone are a feature. The numbers are expected to confirm that the easing of Covid restrictions has allowed growth to pick up as economies re-open. Inflation numbers from the US and Eurozone will be watched carefully, given their elevated levels of late.Markets Range Bound as FED Meeting Awaits