At the start of the week, the euro fell to 1.1523 because traders bought U.S. dollars due to worries about the Israel-Iran conflict. However, after the first shock of the news faded, traders bought back the euro ahead of tomorrow’s U.S. Federal Reserve meeting (FOMC), and the euro rose to around 1.1580.
Also, a European Central Bank (ECB) official said that 1.15 dollars is not a problem for the inflation target of 2%, which made traders buy more euros.
During the New York market, news that Iran wanted to negotiate with Israel made traders sell U.S. dollars, and the euro went up to 1.1614. But later, reports said that Israel’s attacks on Iran were still going on, so the euro dropped back to around 1.1550.
With the Middle East problems, tomorrow’s FOMC meeting, and the G7 meeting happening, there are many reasons for the euro price to change. Because of this, traders might reduce their euro buying positions for now.
Expected EUR/USD Price Range: 1.1490 – 1.1600
Note: The above information does not guarantee any profits. Please make your own decisions when trading.