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EUR/USD traders hold their breath

Trading is likely to be light ahead of this afternoon’s important economic data releases from the US.

All trading involves risk. Losses can exceed deposits.

After the jump that EUR/USD saw the last time the US Federal Reserve spoke about not taking any action to reduce quantitative easing, the markets will be on tenterhooks waiting to see what the latest US unemployment claims are and how the GDP figures have staked up.

These reports will give traders a better idea of the health of the US economy and the wider economic picture as a whole, which Fed chairman Ben Bernanke has stated are the driving force behind voting members’ decisions. Of course, assessing how the Fed will act on these figures has been a difficult task over 2013, and the looming issue of the debt ceiling being breeched once again has only helped to muddy the waters. 

One thing we can be sure of is that comments attributed to the voting members have been broad and open to interpretation, and this is unlikely to change anytime soon. We look set for a quiet morning with chances of volatility in the afternoon.

Spot FX EUR/USD chart

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