Euro trading sideways

The euro is broadly unchanged versus the US dollar as there is little in the way of news to move the currency.

EUR/USD has been trading within a tight range this morning. Dealers are torn between the Federal Reserve and the eurozone debt crisis. Yesterday, Jon Hilsenrath of the Wall Street Journal wrote an article stating he believes the Federal Reserve will keep its quantitative easing scheme unchanged at its meeting next month, despite recent speculation that the Fed will trim the stimulus package towards the end of the year. A reduction in the $85 billion monthly stimulus could lead to a sell-off in the euro.

In European news, Greece was given a €2.5 billion tranche of bailout by the Troika, and this will prevent the indebted nation from going bankrupt. There was little reaction from traders, as it comes as no surprise that the Athens received the money. Even though traders are not immediately worried about the eurozone debt crisis resurfacing, its presence in the background may lead to another round of euro selling.

Spot FX EUR/USD chart

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