The EUR/USD has been having a bumpy ride during the past 3 weeks as price has zig zagged between 1.1200 and 1.1370. Volatility has been on the decline as a consequence of this sideways price action, however, that may be about to change as we have a couple of events this week that could reignite the markets.
This evening at 18:00GMT, there will be a scheduled Federal Open Market Committee (FOMC), where the board of directors of the Federal Reserve will make a decision on monetary policy. There have been calls from senior executives from local Federal Reserve banks stating that an interest rate hike could happen as soon as April. It would seem, at this point, that the markets may not be completely backing this theory. In fact, at one point there had been forecasts of 4 interest rate hikes for 2016, recently that call was reduced to only 2, with some analysts’ comments betting on only 1.
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