EUR/USD Pair Drops From 2-Week Highs Ahead of FOMC Rate Decision

The EUR/USD currency pair today dropped from yesterday’s 2-week highs as investors looked past the results of the US midterm elections triggering a slight recovery by the greenback. The pair’s performance was largely driven by positive investor sentiment towards the greenback, which kept the pair trading in a subdued range.
The EUR/USD currency pair today traded in a range between a high of 1.1445 and a low of 1.1404 as investors waited for the FOMC rate decision.
The currency pair was trading in a consolidative range in the Asian session before heading lower in the early European session. The release of the German trade balance data for September by the Federal Statistical Office in the early European session also contributed to the pair’s decline. The trade balance came in at €17.6 billion, which was lower than the expected €18 billion print. The European Central Bank also published its latest economic bulletin, which did not lift the pair as it extended its losses. Italy’s debt burden and its standoff with the European Union regarding its budget also weighed on the currency pair.
The release of the US initial jobless claims data by the Department of Labor in the early American session had a muted impact on the currency pair despite meeting consensus estimates. The positive tone around US Treasury yields also affected the pair’s performance.
The currency pair’s short-term performance is likely to be affected by the FOMC interest rate decision scheduled for 19:00 GMT.
The EUR/USD currency pair was trading at 1.1439 as at 15:20 GMT having risen from a low of 1.1404. The EUR/JPY currency pair was trading at 130.02 having rallied from a low of 129.67.

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