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EUR/USD steadies above 1.1350 as traders await FOMC cues
The Fed is set to decide on Wednesday, and any signals on the future policy path are expected to drive near term USD and EUR/USD moves.
EUR/USD is consolidating near its monthly low and trading just above the mid 1.1300s during Tuesday’s Asian session, with FX traders holding back on big directional bets ahead of the outcome of a two day Federal Reserve policy meeting, FXStreet reports.
FXStreet says the Fed is scheduled to announce its decision on Wednesday and is widely expected to keep interest rates unchanged, but investors are focused on guidance about the future policy path, which could affect near term USD price action and provide impetus for the euro.
Ahead of the meeting, FXStreet links market positioning to a pause in US Iran hostilities, which helped crude oil prices slump overnight and eased inflation fears, keeping Fed rate hike expectations more restrained and limiting USD strength.
At the same time, FXStreet notes that concerns about potential disruption to global oil supplies keep inflation risks in play, supporting USD bulls, and suggests traders may wait for stronger follow through before concluding EUR/USD has put in a near term bottom.
Latest closeWTI crude $81.92 ▼8.3%|EUR/USD 1.137 ▼0.0%