- The euro remains stuck below 0.8625 for the second day in a row.
- The market is calm waiting for the FOMC.
- On Thursday, the BoE is expected to give a “moderate hike”.
The euro has held within a narrow range against the British pound for the second day in a row. The pair EUR/GBP it has consolidated above 0.8600, although upside attempts have not been accepted above 0.8625.
Consolidation pending the decisions of the Fed and the BOE
Major currency crosses are trading range bound on Wednesday, with investors awaiting the outcome of the Federal Reserve’s monetary policy meeting, scheduled for today.
The Fed is expected to raise rates by 0.75% for the fourth consecutive time, although growing speculation about the possibility of a signal to softer rate hikes in the coming months has fueled investor interest in the November meeting.
In this scenario, the traditional calm prior to the FOMC could lead to significant volatility, should the bank reveal any indication of the direction of the next monetary policy moves.
In addition, the Bank of England is also expected to hike rates by 0.75% on Thursday. In this case, the bank is expected to take a dovish stance in light of the gloomy UK economic outlook.
Technical levels to watch
Source: Fx Street
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