EUR/USD keeps range around 1.0930 post-European open

By FXStreet FXStreet (Mumbai) – Having failed to sustain at higher levels, EUR/USD reverted to familiar ranges around 1.0930 and remains little changed after the European markets opened on a mixed note.

EUR/USD forms a small doji on daily sticks

The EUR/USD pair trades modestly flat at 1.0926, stuck around hourly 5 & 10-SMA confluence. The major extends its consolidative phase, although remains better bid as the shared currency benefits from the cautious start seen in the European markets, with the traders still digesting the recent FOMC decision.

The stocks on the European bourses opened on a positive note; however, the indices quickly pared gains and trades cautious amid mixed corporate news. The DAX trims gains to trade 0.16% higher, while the UK’s FTSE drops -0.84%. The pan European benchmark, the Euro Stoxx 50 defends mild gains and trades near 3,420 points.

However, the recovery in the EUR/USD pair appears short-lived as the divergent monetary policy outlooks between both continents continue to weigh on the EUR. On Wednesday, the Fed indicated chances of a Dec rate hike while the ECB hinted towards more easing in Dec last week.

Meanwhile, the sentiment on the European markets is likely to dominate the moves in EUR/USD. While German CPI …read more

Source:: FX Street