The EUR\/USD remains steady around 1.1640 as markets anticipate the Federal Reserve’s policy decision. Current US job figures show a modest rise in private-sector employment, averaging 4,750 jobs per week, and a slight increase in vacancies to 7.67 million.<\/p>\n
The US Dollar hovers around six-week lows, with a strong market prediction of a 25-basis-point rate cut. This anticipation comes despite previous labour market concerns and mixed recent data.<\/p>\n
Jerome Powell’s upcoming remarks are awaited for clues on the easing cycle’s direction. Meanwhile, in the Eurozone, improvements in sentiment have not significantly boosted the Euro.<\/p>\n
The currency heat map shows percentage changes, with Euro outperforming the Japanese Yen. The table lists how major currencies have shifted against each other today.<\/p>\n
This has left EUR\/USD in a holding pattern as market players await more definitive guidance from the Federal Reserve. This guidance will likely impact EUR\/USD’s next directional move.<\/p>\n
We are seeing the market almost fully price in a 25-basis-point rate cut for this week’s Federal Reserve meeting. This anticipation has kept the US Dollar weak, hovering near lows we haven’t seen since late October 2025. Consequently, EUR\/USD is holding steady around 1.1640 as traders wait for the official announcement and guidance.<\/p>\n
The real trade is not the rate cut itself, but the potential for volatility surrounding Jerome Powell’s forward-looking statements. We should be prepared for him to adopt a firm tone to manage market hopes for a rapid easing cycle into 2026. This setup is ideal for using options strategies like straddles or strangles on EUR\/USD to position for a large price swing, regardless of the initial direction.<\/p>\n
Recent data gives the Fed room to ease, with the latest November 2025 Consumer Price Index (CPI) report showing headline inflation cooling to 2.9%, continuing its gradual decline. This situation is a world away from the aggressive rate hikes we saw culminate in 2023 when inflation was the primary concern. Still, any surprisingly hawkish commentary could see traders rapidly unwind short-dollar positions.<\/p>\n
While the latest JOLTS report showed job openings at 7.67 million, the broader trend in the US labor market remains one of moderation. We have seen nonfarm payrolls growth average just 145,000 over the past quarter, down significantly from the start of the year. This underlying softness supports buying dips in EUR\/USD or using call options, but this should be done cautiously ahead of the Fed\u2019s new economic projections.<\/p>\n
On the other side of the pair, the Euro offers little independent direction, as recent comments from European Central Bank officials suggest a pragmatic, wait-and-see approach. This relative quiet from the ECB means the Fed’s policy path will almost single-handedly drive the EUR\/USD pair into early 2026. Our derivative positions should therefore remain focused on catalysts originating from the US economic calendar.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD holds near 1.1640 as markets await Fed decision; Dollar weak amid rate cut expectations.<\/p>\n","protected":false},"author":62,"featured_media":16967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=36420"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16967"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}