The EUR/USD remains under cautious pressure as traders brace for the Federal Reserve’s upcoming policy announcement. Market sentiment has been dampened by lingering concerns over a potential rate hike, with the central bank’s stance on inflation and economic resilience likely to dictate the pair’s near-term direction. As of Tuesday, the euro hovered around the 1.07 mark, reflecting investor hesitancy ahead of the decision.
Analysts anticipate the Fed will maintain its hawkish tone, citing recent economic data that indicates persistent inflationary pressures. However, softening employment figures have fueled speculation about a possible policy pause in 2024. This dual narrative has kept traders in a holding pattern, weighing the dollar’s strength against the euro’s outlook. The outcome of the Federal Reserve meeting is expected to set the tone for the EUR/USD heading into the year-end trading period.
