• EUR/USD picks up pace and retargets the 1.0900 barrier.
• Advanced German Q4 GDP Growth Rate next on tap.
• US Dallas Fed index, short-term auctions come later in the NA session.

The European currency starts the new trading week on the positive foot and lifts EUR/USD back to the vicinity of the key barrier at 1.0900 the figure on Monday.

EUR/USD remains focused on the FOMC, ECB events

EUR/USD reclaims ground lost and manages to regain the smile after two consecutive daily pullbacks, shifting its focus at the same time to the 1.0900 neighbourhood amidst the broad-based cautious stance ahead key events later in the week.

Indeed, the FOMC meets on Wednesday and a 25 bps rate hike is largely anticipated, while the ECB is predicted to raise its policy rate by half percentage point on Thursday.

Investors’ attention, in the meantime, should remain on the potential future moves by these two major central banks, where the sentiment among investors remain at the mercy of hawkish messages from the Fed/ECB policy makers, the likelihood of Fed’s pivot, improved growth prospects in the euro region and the resilience of the US economy.

In the domestic calendar, Germany’s advancedQ4 GDP Growth Rate is next on tap seconded by final Consumer Confidence and Economic Sentiment in the broader Euroland. In the US, the Dallas Fed Manufacturing Index will be the sole release on Monday.