Daily U.S. Session Watchlist: EUR/USD

 The FOMC gang is up in the next trading session!

Will Powell and his team move the dollar’s prices today?

Before moving on, ICYMI, today’s Asia-London session watchlist looked at EUR/AUD’s uptrend ahead of Australia’s inflation data and sentiment reports in the Eurozone. Be sure to check that out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

UK consumers get inflation relief as shop prices fall again – BRC

BOJ must avoid premature tightening -opinions from July meet

German consumer morale steady heading into August- GfK

UK house prices fall in July as tax cut is scaled back – Nationwide

Australian CPI blows hot in Q2, core inflation far cooler

Sydney lockdown extended by four weeks as Australia Covid-19 cases spike

Asia shares sit at 2021 lows ahead of Fed verdict

Upcoming Potential Catalysts on the Economic Calendar:

Credit Suisse economic expectations at 8:00 am GMT

Canada’s CPI reports at 12:30 pm GMT

U.S. goods trade balance at 12:30 pm GMT

FOMC statement at 6:00 pm GMT

FOMC presser at 6:30 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: EUR/USD

In a few hours, the U.S. Federal Open Market Committee (FOMC) will publish its July monetary policy decisions.

Markets aren’t expecting policy changes this month, but at least some expect Governor Powell and his team to react to the pickup in inflation.

Specifically, investors will want to see if the team considers the recent rise in prices to warrant a tapering of their easy policies in the foreseeable future.

Or not. If the Fed members focus on the rise in COVID-19 cases and the termination of some financial assistance programs, then the dollar may weaken against its counterparts.

EUR/USD could complete a break-and-retest setup on the 1-hour chart and revisit its weekly highs.

If FOMC members even hint at some form of tapering, however, then you can bet your Peloton bike that the dollar would gain more support across the board.

EUR/USD could dip back below its broken trend line resistance on the 1-hour chart and maybe even head back to its July lows.

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