EURUSD is rallying firmly ahead of the FOMC later today. The pair has been on a strong run since the March lows, gaining around 5.5% as narrowing yield spreads between EU and US bonds help lift sentiment. Much of the driver behind the move has been the narrowing of monetary policy divergence between the Fed and the ECB. With the Fed having slowed the pace of its rate hikes this year while the ECB pushed ahead with a further full point of tightening, EUR has strengthened considerably against USD. With both central banks due to make rate decisions over the next two days, there is plenty of room for fresh volatility. ... (full story)