EUR/USD consolidates ahead of Fed’s decision

The EUR/USD pair holds within the familiar ranges ahead of the most awaited event this week, namely the FOMC meeting whereas the IFO German business sentiment is at its lowest level in more than two years.

At 1.0223, the EUR/USD pair is alternating with the beginning of the week ahead of the Fed’s interest rate decision on Wednesday. The US dollar has been on the back foot for the main while traders weigh the implications of a rate hike and what this will mean for the US economy.

According to recent data, including the US Composite PMI Output Index falling more than expected to 47.5 this month from a final reading of 52.3 in June, the economy could be on the verge of a looming recession.

Martins Kazaks, Latvian central bank governor said, on Monday, that the ECB may not be done with big rate hikes, and this has dented the dollar today while US equities were modestly lower to start the week.