EUR/USD Struggles for Stability Ahead of Crucial Fed Interest Rate Decision.

EUR/USD Holds Steady Near 1.0420 as Markets Await Fed Interest Rate Decision

The EUR/USD pair remains cautious, trading near 1.0420 during Wednesday’s European session, as investors await the highly anticipated Federal Reserve (Fed) monetary policy announcement at 19:00 GMT. The Fed is widely expected to keep interest rates unchanged within the 4.25%-4.50% range, as policymakers assess concerns over stalled disinflation and a stable labor market.

With markets already pricing in a no-change decision, traders are shifting focus to Fed Chair Jerome Powell’s press conference, which will provide insights into the central bank’s outlook. Investors are particularly interested in how long the Fed plans to maintain current interest rate levels, especially amid persistent inflation risks. Concerns over potential price pressures have intensified following US President Donald Trump’s tariff policies, which could drive up costs for goods and services.

Key Market Highlights:

✔ EUR/USD trades cautiously as Fed decision nears.
✔ Fed expected to hold rates steady amid inflation and labor market concerns.
✔ Jerome Powell’s speech will be key to market direction.
✔ US tariffs under scrutiny for potential inflationary impact.

Stay tuned for more updates.