The EUR/USD is under pressure as traders position for the Fed. The ECB meeting on Super Thursday will be a critical day for the euro. Central banks’ divergence issues will determine the direction of EUR/USD. The EUR/USD price continues to trade unchanged throughout the day as markets await the outcome of the two-day FOMC meeting. Currently, the single currency is trading at 1.1260 in the range of 1.1250-70. –Are you interested to learn more about Forex demo accounts? Check our detailed guide- On Tuesday, the US dollar gained slight ground against most of the G10, while the EUR/USD pair rose in London, trading to 1.1320 and then fell to 1.1260 in New York as the data revealed the shocking truth about US inflationary dynamics. In November, the US PPI rose 0.8%, indicating continued high inflation in the United States. Following the report, US yields surged to +9.6 y/y, exceeding expectations and posting their biggest gain since then. This has been a fundamental change since 2009. Government bond yields rose from 0.64% to 0.66%, while 10-year bond yields rose from 1.42% to 1.44%. Get FREE Forex Signals Now! In response to rising inflation, the Fed is expected to increase the pace of tapering monthly bond purchases. Chairman Powell will hold a press conference in 30 minutes following the announcement and quarterly projections. TD Securities analysts expect that the rate of contraction will double to $30 billion per month in March, which marks the end of quantitative easing. A more aggressive tone may also be conveyed through the explanation, economic forecast, and scatter chart. The average is expected to increase by 50 basis points in 2022. In terms of rates, analysts say the market is designed to end quantitative easing sooner. Inflation tolerance and the appearance of the curve will be sensitive to reports of price increases. According to analysts, not enough is being done in forex to counterbalance the dollar’s resilience as other central banks’ decisions are expected to be softer than the Fed’s. –Are you interested to learn more about CFD brokers? Check our detailed guide- EUR/USD price technical analysis: Bearish dominance below 1.1300 The EUR/USD price is well below the 1.1300 key figure and the 20-period and 50-period SMAs on the 4-hour chart. So far, the pair has marked a 27% average daily range, which is a bit lower than usual. The upthrust bar with a high volume suggests a bearish bias for now. Hence, the price may see a drift towards 1.1200. On the upside, 1.1300 will be the key hurdle for the buyers. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal EUR/USD Daily share Read Next Gold Outlook: Struggling Below $1,770, Expecting Hawkish Fed Saqib Iqbal 9 months The EUR/USD is under pressure as traders position for the Fed. The ECB meeting on Super Thursday will be a critical day for the euro. Central banks' divergence issues will determine the direction of EUR/USD. The EUR/USD price continues to trade unchanged throughout the day as markets await the outcome of the two-day FOMC meeting. Currently, the single currency is trading at 1.1260 in the range of 1.1250-70. -Are you interested to learn more about Forex demo accounts? Check our detailed guide- On Tuesday, the US dollar gained slight ground against most of the G10, while the EUR/USD pair rose… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.