EUR/USD looks well placed to build on early June gains.

EUR/USD is reined in below 1.08. Economists at Société Générale analyze the pair’s outlook ahead of Fed and ECB meetings.Another down leg is not ruled out if the 1.0860/1.0900 resistance area proves a bridge too far.

Right now, even if a July increase cannot be ruled out and rate cuts have been pretty much completely priced out for 2H, Powell or the dots would have to be sufficiently hawkish to keep 2y yields and the Dollar from unravelling.

Today’s decision should not measure up against what is likely to be a hawkish 25 bps by the ECB tomorrow. With that in mind, EUR/USD looks well placed to build on early June gains. Technically, however, the picture is not straightforward and 1.0860/1.0900 must be overcome for the pair to kick on. Another down leg is not ruled out if resistance area proves a bridge too far and the ECB sparks profit-taking tomorrow.

EUR/USD retakes 1.0800 as US Dollar weakens ahead of Fed

EUR/USD is trading around 1.0800, back on the bids in the European trading hours. The pair is capitalizing on the renewed weakness in the US Dollar alongside the US Treasury bond yields. Investors refrain from placing fresh bets on the major ahead of the Fed policy decision.

EUR/USD News

GBP/USD rebounds toward 1.2650 after UK data, Fed decision eyed

GBP/USD is attempting a rebound toward 1.2650 despite the mixed UK GDP and Industrial Production data releases. The US Dollar is losing ground amid jittery markets, awaiting the Fed rate pause announcement following soft US inflation data.

GBP/USD News

Gold defends 100-day SMA ahead of the crucial FOMC decision

Gold price once again attracts some buyers near the 100-day SMA on Wednesday and recovers a part of the previous day’s slide to the weekly low. The XAG/USD sticks to its modest intraday gains heading into the European session and currently trades just above the $1,945 level.