The post EUR/USD gives back early gains as US Dollar rebounds, Fed-ECB policy eyed appeared on BitcoinEthereumNews.com.

The EUR/USD pair surrenders a majority of its early gains and flattens around 1.1415 during European trading hours on Monday. The major currency pair falls back as the US Dollar (USD) recovers half of its early losses. At the time of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, 0.15% lower to near 100.35. Still, the DXY is close to its over nine-month high of 100.54 posted on Friday. The US Dollar trades broadly firm amid higher oil prices and a risk-off market sentiment due to conflicts between the United States (US), Israel, and Iran. Meanwhile, investors await monetary policy announcements by the Federal Reserve (Fed) and the European Central Bank, which are scheduled for Wednesday and Thursday, respectively. Both central banks are expected to leave interest rates unchanged. The Fed is anticipated to hold interest rates steady as the Strait of Hormuz-led spike in the oil price has de-anchored inflation expectations. In the policy meeting, investors will also look for cues regarding how long the Fed will maintain a status quo. According to the CME FedWatch tool, the Fed will hold interest rates steady in another four policy meetings. Meanwhile, the ECB is expected to continue holding interest rates steady as price pressures have remained close to the 2% target for a longer period. Central banks FAQs Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the…

---

Filed under: News - @ March 16, 2026 8:29 am