The current quarter presents a crucial period for forex traders as major central banks across the globe announce their latest monetary policy decisions. The Federal Reserve, European Central Bank, and Bank of Japan are all scheduled to release rate decisions that could significantly impact currency markets.
The Fed's stance on interest rates remains the primary driver of USD strength. Any hawkish signals could push the dollar higher against major peers, while a dovish tilt might trigger a selloff. Traders are closely watching inflation data and employment figures for clues about the Fed's next move.
In Europe, the ECB continues to navigate a challenging economic environment with persistent inflation concerns. The EUR/USD pair remains highly sensitive to interest rate differentials between the two regions.
Key levels to watch this week include the 1.0800 support for EUR/USD and the 150.00 resistance for USD/JPY. Breakouts above or below these levels could signal the beginning of new trends.
