EUR/USD inter-markets: rangebound persists ahead of FOMC

EUR/USD remains stuck within the recent range, failing to extend today’s spike further north than 1.1030 and looking to the USD-dynamics as the exclusive driver behind the price action.

In fact, the current recovery of the greenback after positive results in the US docket is pushing spot back to the area of daily lows around 1.0980, opening the door for an even deeper retracement in the upcoming hours.

US yields remain USD-supportive in the wake of the data, climbing to session tops in the 2-year, 5-year and 10-year benchmarks and in turn keeping alive the spread differential with their German peers.

Also supporting the buck, volatility measured by VIX meanders the lower bound of the range, looking to stabilize after yesterday’s peaks.

Looking ahead, a cautious statement (in line with previous ones) is expected from the Committee at tomorrow’s meeting, which framed within the current context and factoring in the recent upbeat results in the US economy, should bode well for a continuation of the USD upside.