The EUR/USD pair remained steady following the Federal Reserve’s latest policy announcement, with traders showing little reaction to the central bank’s decision. The Fed maintained its interest rate stance, emphasizing a data-dependent approach moving forward. Despite some dovish expectations, market participants are waiting for clearer signals on potential rate adjustments in the coming months.
Investor focus has now shifted to the upcoming US GDP data, which could provide fresh momentum for the currency pair. Analysts expect the report to indicate whether the US economy is slowing down or maintaining resilience. A stronger-than-expected growth figure may reinforce the dollar’s strength, while weaker numbers could provide support for the euro.
Recent economic indicators suggest that US economic growth remains solid, but inflation concerns persist. If GDP figures come in above expectations, it could fuel speculation about a more prolonged higher-rate environment. On the other hand, softer data may give the Fed more room to consider rate cuts later this year.
Meanwhile, the eurozone’s economic outlook remains mixed, with sluggish growth in key economies such as Germany and France. While inflation has been gradually cooling, the European Central Bank has indicated caution in its rate decisions. The ECB is expected to assess economic conditions carefully before making any significant policy changes.
Technical analysis shows that EUR/USD is trading within a tight range, with key support around 1.0800 and resistance near 1.0900. A breakout above resistance could signal further gains, while a drop below support may indicate renewed bearish pressure. Short-term momentum will likely be dictated by upcoming US economic data releases.
With uncertainty surrounding US economic performance and Fed policy, traders remain cautious ahead of the GDP report. The data’s impact on rate expectations will be closely watched, determining whether the dollar extends gains or if the euro finds renewed strength.
