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Euro Depressed Below 1.1500s vs USD Amid FOMC Focus
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In Short: The Euro remains under pressure below 1.1500s against the USD as the US Federal Reserve's upcoming policy meeting looms, according to reports.
The Euro continues to face downward pressure, trading below the mid-1.1500s level against the US Dollar (USD) during the Asian session on Tuesday. This trend has persisted for the fourth consecutive day, with the pair just above a one-month low reached the previous day.
The US Dollar retains its bullish bias ahead of the two-day FOMC policy meeting, starting today, amid supportive factors. Traders are likely to wait for the crucial Fed rate decision on Wednesday before making fresh bullish bets on the USD.
Adding to the pressure on the Euro, the European Central Bank's (ECB) hawkish outlook could offer some support, potentially limiting further losses for the EUR/USD pair. However, the recent decline in US bond yields keeps the US Dollar depressed, acting as a tailwind for the Australian Dollar (AUD) amid the Reserve Bank of Australia's (RBA) hawkish stance.
The Japanese Yen (JPY) experienced a sudden surge higher after falling back below the 160.00 psychological mark against the USD earlier this week, driven by a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.
The fundamental backdrop suggests that the path of least resistance for the Euro remains to the downside, according to reports. This outlook is supported by the ongoing focus on the FOMC meeting and the hawkish ECB stance, which could provide some support to the Euro but is unlikely to reverse the current downward trend.
What's still developing
- Know more. ) The table below shows the percentage change of US Dollar (USD) against listed major currencies last 7 days.