The EUR/USD pair on Monday gave a preview to the volatile week ahead.

Draghi comments, Rosenstein resignation kick off volatile week

The EUR/USD pair has bounced around Monday morning off of two separate events.

European Central Bank President Mario Draghi caused the euro to gain against the dollar after saying that he saw a rigorous pick up in underlying inflation.

EUR/USD jumped from 1.175 to 1.180.

However, the pair slowly slipped to 1.177 after reports that U.S. Deputy Attorney General Rod Rosenstein will leave his position.

The political turmoil has investors looking to the safe-haven dollar.

Fed meeting to end in rate hike

The ups and downs of the euro and the dollar will likely continue throughout the week as the Federal Reserve’s FOMC meeting approaches Wednesday.

The Fed is expected to raise interest rates from 2.0% to 2.25%.

With the rate increase, we’ll likely see the dollar rising. However, a lot will depend on Fed President Jerome Powell’s comments during his press conference.

Key U.S. data Thursday

After the Fed rate decision Wednesday, there are a couple of key data releases Thursday that could determine the trajectory of the dollar.

The GDP for Q2 is expected to remain at 4.2% growth annualized, but a change from the estimate could have the dollar dropping or rising.

Core personal consumption expenditures, a measurement of consumer spending, is expected to rise to 2.2% for Q2, compared to 2.0% previously.

Eurozone CPI Friday

We’ll see how vigorously Euro-area inflation picks up with a consumer price index reading on Friday.

The September CPI number is expected to increase to 2.1% compared to 2.0% the prior month.

The core reading is also expected to increase to 1.1% from 1.0%.

If the increase happens, it could validate Draghi’s comments on price pressure due to increased wages resulting from a tightening labor market.