S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
EUR/USD slipped lower ahead of the ECB’s interest rate decision and statement, now trading near 1.1680. The pair remains locked in a wider range, with support at 1.1600 and resistance at 1.1800.
Before the release: The euro had been trading steady, with markets anticipating unchanged rates but closely watching for guidance on inflation and growth. Traders were looking for clarity after recent volatility tied to politics in France and broader eurozone uncertainty.
The ECB left rates unchanged at 2.15%, as expected. But the bigger story came from their updated forecasts. Inflation was nudged slightly higher for 2025–2026, suggesting price pressures linger. However, growth projections were cut — 2026 was revised down to 1.0% while 2027 held at 1.3%.
Bottom line: Euro bulls were hoping for a hawkish push from Lagarde, but weaker growth projections stole the show, questioning heavy upside in EUR/USD
S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
DXY holds near support as traders await FOMC, with three cuts priced and data setting the next move.
Sterling stalls at resistance as soft UK growth data shifts attention to next week’s BoE meeting and balance sheet risks.
