The greenback overshadowed most of its arch rivals following a dull start to the week.
EUR/USD wrestled to hold above the 1.1600 mark and closed at 1.1580 showing a lack of clear directional bias. Investors are eyeing pre-Fed data like US ADP jobs and ISM Services and are expecting Fed Reserve to announce its bond program taper.
With inflation pressures continuing to be present in the bloc, ECB President Lagarde has fewer options up his sleeves other than adopting a wait and watch approach. The near-term picture for EUR/USD also favours a bearish bias.
On the other hand, Gold continues to remain on the back foot below $1,790 due to mixed opinions over inflation and stimulus expectations. The looming threat of a third wave of the pandemic also has its fair share of contribution in keeping the gold price under check. Daily charts are giving the sign of bulls giving up which is also supported by mildly bearish 20 SMA chart.
Everyone is paying attention to the Fed verdict which will be out on Wednesday. Investors are anticipating Fed to reinvigorate massive pandemic support program by way of curbing monthly purchases of Treasuries and mortgage-backed securities.
