EUR/GBP in range below 0.8625 ahead of the FOMC

• The euro remains stalled below 0.8625 for the second consecutive day.
• The market is calm ahead of the FOMC.
• On Thursday, the BoE is expected to deliver a "dovish hike".

The euro has remained trading within a narrow range against the British pound for the second consecutive day. The pair has consolidated above 0.8600, yet with upside attempts lacking acceptance above 0.8625.

Consolidation ahead of the Fed and BoE decisions

Major FX crosses are trading rangebound on Wednesday, with the investors awaiting the outcome of the Federal Reserve’s monetary policy meeting, due later today.

The Fed is widely expected to hike rates by 0.75% for the fourth consecutive time, although growing speculation about the possibility of a signal towards softer rate hikes over the next months has boosted investors’ interest in November's meeting.

In this scenario, the traditional calm ahead of the FOMC, might lead to a significant deal of volatility, in case the bank discloses any hint about the direction of the next monetary policy moves.

Furthermore, the Bank of England is also expected to hike rates by 0.75% on Thursday. In this case, the bank is expected to adopt a dovish tone in the light of UK’s bleak economic prospects.

Technical levels to watch