The dollar continued its upward movement on Monday. Ahead of the Federal Reserve decision on Wednesday, the EUR/USD pair is expected to trade subdued, according to economists at Commerzbank.

Waiting for the Fed

“The inflation surprise from the US on Friday fueled expectations for even stronger interest rate hikes by the US Fed and led to a sell-off in equity markets yesterday. On the one hand, the USD may have benefited from this negative sentiment. On the other hand, the expectation of an even tighter course by the Fed may also have supported the USD.”

“Today, trading in EUR/USD could be subdued. However, if the market sentiment continues to be poor today, the USD could tend to receive support. However, market participants may prefer to exercise caution ahead of the highlight of the week.”