Currency Pair of the Week - EUR/USD

EUR/USD should be worth keeping an eye on this week, with the Federal Reserve and European Central Bank both set to announce their first monetary policy decision of 2023.

A hawkish Fed versus a dovish ECB dominated the narrative for most of last year, but things seem to have reversed in the new year. Recent comments from various ECB Committee members have led the market to expect a 50bps rate hike, while traders are pricing in another slowdown in the Fed’s pace of tightening this week.

Looking at EUR/USD, the pair has been trending in a bullish channel since November. However, it has failed multiple attempts to break higher and currently hovers near the upper trendline.

Will this week’s central bank decisions help the pair break higher, or will it kickstart a new trend lower?

Check out this article for a deeper insight into what to expect and how EUR/USD could be impacted: