EUR/USD: Markets Are Pricing Policy Expectations, Not Just PriceEuro vs. US DollarFX:EURUSDClaire_GrantThe recent movement in EUR/USD reflects a broader macroeconomic story than technical patterns alone. As the European Central Bank and the Federal Reserve continue to assess incoming economic data, investors are constantly adjusting expectations for the future path of interest rates. The sequence of ECB and FOMC meetings highlighted on the chart illustrates how monetary policy communication has repeatedly influenced market sentiment. Even when policy rates remain unchanged, updated guidance and economic projections can reshape expectations for future decisions, affecting both the euro and the US dollar. Interest rate differentials remain one of the primary drivers of EUR/USD. A more restrictive Federal Reserve generally supports the US dollar, while expectations of additional easing by either central bank can shift capital flows and influence the exchange rate. With both central banks remaining data dependent, upcoming inflation reports, labour market releases and GDP figures are likely to play a greater role than short-term technical signals. For now, EUR/USD continues to reflect the evolving balance between Federal Reserve and ECB policy expectations rather than a single directional narrative. Markets to watch: EUR/USD, DXY, US Treasury yields, Eurozone CPI, US CPI, ECB and FOMC communications.