VOT Research Desk
On Wednesday, the EUR/USD pair struggles to generate any real momentum and oscillates within a small band for the majority of the European session.
However, spot prices are able to maintain themselves firmly above the 1.0600 level and are still within striking distance of the more than five-month top reached on Tuesday.
In anticipation of a less aggressive Fed policy tightening, the US Dollar is hovering near its lowest level since late June, which benefits the EUR/USD pair.
The market expectations for a comparatively modest 50 bps Fed rate hike at the conclusion of a two-day meeting later this Wednesday were solidified by the softer-than-expected US consumer inflation statistics reported on Tuesday.
The US Treasury bond yields remain low as a result, which, combined with the safe-haven dollar suffers from the equity markets’ steady performance.
|
Daily SMA20 |
1.0435 |
|
Daily SMA50 |
1.0126 |
|
Daily SMA100 |
1.0073 |
|
Daily SMA200 |
1.035 |
