EUR/USD takes a glance above 1.1800 for the primary time since early July

The negative dollar positioning continues ahead of the FOMC meeting decision tomorrow, with the greenback falling across the board in European trading today. EUR/USD is now above 1.1800 for the first time since July as buyers are looking for a stronger technical breakout ahead of the US retail sales data later.

There are large option expiries for the pair around the figure level but that’s not holding buyers back it would seem. The negative dollar sentiment is persisting with USD/CHF also under pressure and down 0.4% to 0.7910 and GBP/USD up 0.3% to 1.3640 currently.

It’s tough to pin the flows here on anything else but further softening in anticipation of the Fed tomorrow. The dollar had already been on the ropes coming in to the session today and this just piles more pressure on the greenback.

The question now is, will the Fed deliver according to market expectations? Or will there be a slightly hawkish undertone to upset the underlying sentiment that seems to be growing this week?