EUR/USD likely to provide unclear signal for the year ahead

Since the beginning of the New Year, EUR/USD is trading range bound in between $1.0700 to $1.0950 levels. While looking at the current global conditions and free fall of oil prices, it is likely to move direction less. The only key drivers for the EUR/USD will be central bank statements on the Economic outlook. 

At the time of ECB's latest monetary policy statement, traders were affected by more than 1% price movement. Overall market sentiments are negative for Euro and positive for US dollar. Such statement is also supported by CME's speculative trade positions. At the end this too reflects the uncertainty about the FOMC rate decision due tomorrow.

While looking at the overall risk sentiments, there is no meaning to pay attention to individual leading indicator if central bank has already made it clear to depreciate their currency. The market is still struggling to create a clear story for EUR/USD after FOMC statement.