EUR/USD Holds Firm Near 1.1500 Ahead of Fed Rate Decision Amid Geopolitical Risks

EUR/USD Sits Firm Near 1.1500 Ahead of Fed Rate Announcement

The EUR/USD pair finds support near the 1.1500 level during Wednesday’s Asian session. Despite a series of disappointing US economic reports weakening the US Dollar, escalating geopolitical tensions between Israel and Iran may cap gains for the Euro.

US Economic Data Weighs on the US Dollar

US Retail Sales declined by 0.9% in May, worse than the anticipated 0.7% decrease, while Industrial Production fell by 0.2%, below forecasts of a 0.1% rise. These weaker-than-expected numbers have dented confidence in the US economy and weighed on the Greenback.

Fed Rate Decision and Market Expectations

Investors widely expect the Federal Reserve (Fed) to keep interest rates unchanged at its June meeting on Wednesday. According to Reuters, markets are pricing in nearly an 80% chance of a rate cut in September, followed by a second cut in October.

Meanwhile, hopes for a hawkish stance from the European Central Bank (ECB) are providing some support to the Euro.

Suggested Internal Links (Tredu.com):

• EUR/USD Technical Analysis and Forecast
• How Fed Rate Decisions Impact Forex Markets
• Geopolitical Risks and Currency Movements
• Understanding Eurozone Monetary Policy