Euro Above 100 DMA Ahead of FOMC

Today's attempt by EURUSD to break above its 100-DMA appears to have more momentum than that of 2 weeks ago. Reports that a Thursday ECB rate cut was not a done deal were partly attributed to today's euro rally. Meanwhile, the broad decline in the greenback is a result of rising expectations that the FOMC has little choice but to downgrade its economic view on Wednesday and dampen expectations of any early reduction of QE. Meanwhile, ECB's Draghi is now “forced” by the market to deliver the much anticipated rate cut --even if it has little macroeconomic effect. Leaving rates unchanged would prop the euro higher, while cutting rates will depend on the extent of the ECB's downgrade of its Eurozone view. We issued a new edition of the Premium Insights with 2 new Premium charts on EURUSD and trades on USDJPY and GBPUSD. The rest of the insights will be released later today. More on the latest Premium Insights.