The Fed and ECB are likely to take opposing positions at next week’s meeting. The market wants clarity about the Omicron variant and its potential impact on growth. The EUR/USD currency pair is currently near a year low and threatens to drop to 1.1200. The EUR/USD weekly forecast is biased to the downside as risk sentiment remains poor amid the Omicron variant and traders await Fed and ECB. –Are you interested to learn more about CFD brokers? Check our detailed guide- For the third straight week, the EUR/USD pair traded around 1.1300, as uncertainty over the Omicron coronavirus variant and looming central bank decisions made market participants wary. In a later testified before Congress on the CARES bill, Powell said he expected to discuss accelerated emissions reductions at the December meeting, adding that funding might end “a few months early.” Markets now expect the Fed to double its contraction rate to $30 billion a month. The US policy will leave rates unchanged, but ending the support programs is the first step toward tightening, which increases the likelihood of a rate hike or two in 2022. The European Central Bank has adopted a wait-and-see attitude: President Christine Lagarde stated that rates would likely rise in 2022 and urged the central bank not to raise rates prematurely. On Thursday, traders were surprised by reports that the Governing Council was meeting in December to discuss a limited and temporary increase in the bond purchase program (APP). According to headlines, market negotiations indicate the central bank could extend reinvestment times or make reinvestment more geographically flexible as part of a contingency program. Get FREE Forex Signals Now! Investor confidence in future growth could be increased or destroyed by events related to the Omicron brand. According to market sentiment, tougher measures could delay economic recovery. To understand how the new option can affect global growth, we must wait a few weeks. Omicron would be less dangerous if considered less dangerous, which would partially offset the effects of a funding reduction. Key data/events for EUR/USD Next week’s macroeconomic calendar will also include US retail sales for November, projected to increase 1% m/m, and Markit’s tentative PMIs for December. Moreover, Eurozone inflation and ECB and FOMC meetings are also key market movers next week. –Are you interested to learn more about Forex demo accounts? Check our detailed guide- EUR/USD weekly technical forecast: Probability of upside correction The EUR/USD pair is consolidating in a narrow range above the 1.1300 mark. The pair managed to close above the 20-day SMA this week. We expect an upside correction after falling more than 500 pips over the past three months. The upside hurdles lie around 1.1385 (local high) ahead of 1.1465 (50-day SMA). If the price does not surpass 1.1330, it is prone to fall back towards 1.1200. 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 Forecast share Read Next AUD/USD Price Fails to Impress Buyers Below 0.72 Despite Risk-on Saqib Iqbal 2 months The Fed and ECB are likely to take opposing positions at next week's meeting. The market wants clarity about the Omicron variant and its potential impact on growth. The EUR/USD currency pair is currently near a year low and threatens to drop to 1.1200. The EUR/USD weekly forecast is biased to the downside as risk sentiment remains poor amid the Omicron variant and traders await Fed and ECB. -Are you interested to learn more about CFD brokers? 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