EUR/USD at crossroads ahead of key economic events

The EUR/USD pair is getting prepared for reaction to the key economic events this week, including rate decision by the Fed and ECB as well as Friday’s NFP data.

EUR/USD is, therefore, seen at a crossroads trading at 1.0873 at the time of writing slightly up on the day by .015% after having ranged between a low of 1.0802 and 1.0867 in what has been a two-way business day ahead of central bank meetings.

The Fed’s decision on Wednesday is the first major risk for the pair and then the ECB will be on Thursday, but the strongest influence will be after the announcement of US nonfarm Payrolls on Friday, if the deata happened to carry any surprise.

The central bank outcomes are expected to see the Fed hike by no more than 25 basis points and the European Central Bank by 50 basis points.

Markets are expecting hawkish rhetoric from the central bank governors, Jerome Powell and Christine Lagarde. Their tone around growth and inflation as well as guidance on further potential hikes could be market-moving.