EURUSD

As the first month of the new year comes to an end, a significant flow of data begins in global markets. The US Federal Reserve (Fed) is holding its first meeting of the year today, while the European Central Bank (ECB) decision and the US Q4 Growth data will be announced tomorrow. On Friday, the Fed's inflation indicator, the Personal Consumption Expenditures (PCE) data, will follow. These developments could affect the Dollar Index, increasing volatility in the EURUSD and GBPUSD pairs. While the Fed expects two interest rate cuts throughout the year, no changes are anticipated in this meeting. A key point will be the guidance provided by Fed Chairman Powell regarding his monetary policy strategy.

When examining the EURUSD pair, the range of 1.0404 – 1.0430 stands out as a critical area. As the pair approaches these averages, we also observe that the Dollar Index is in a decision-making process. There is curiosity about whether the pair will remain above these levels or dip below, entering a negative trend. It is crucial to carefully monitor the pricing behavior around these averages in both EURUSD and DXY.