EUR/USD has remained subdued in the London market ahead of US and European monetary policy meetings. The market is expected to show clearer direction depending on forthcoming catalysts.
Market participants in London are increasingly adopting a wait-and-see stance ahead of announcements from US and European monetary policy meetings, and trading activity, particularly in EUR/USD, may decline. The market is at a stage where it is carefully assessing whether the outcome of the meetings will prompt a break from the short-term range.
Against this backdrop, differences in interest-rate trends and policy stances in the US and Europe are being reassessed, and the various currency pairs are unlikely to establish a clear direction until new catalysts emerge. In particular, announcements and the wording of statements following the meetings may affect EUR and USD markets.
Market participants are expected to continue waiting for the conclusions and implications of the meetings, with small price movements within the range likely to continue. Periods of reduced liquidity are also anticipated, and new trading catalysts are expected to remain limited until material developments emerge.
Overall, with US and European monetary policy meetings approaching, trading is expected to remain subdued, particularly in EUR/USD, while the content of the post-meeting announcements is likely to shape the next phase.