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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:

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

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

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.