EUR/USD trims previous gains with the US Dollar firmer ahead of the Fed
The post EUR/USD trims previous gains with the US Dollar firmer ahead of the Fed appeared on BitcoinEthereumNews.com.
Geopolitical concerns and higher Oil prices are weighing on the Euro’s recovery attempts. Investors’ fears of higher US involvement in the Israel-Iran war keep the safe-haven US Dollar buoyed. EUR/USD is struggling to find acceptance above the 1.1500 level. The EUR/USD pair is showing minor gains on Wednesday following a significant decline on the previous day. The escalating tensions in the Middle East, coupled with the ongoing uncertainty about global trade, and the sharp acceleration in Oil prices are keeping upside attempts limited. The common currency’s recovery from Tuesday’s lows has stalled at the 1.1500 area, about 1% below last week’s highs. Market sentiment remains frail as the war between Israel and Iran enters its sixth day, with the US taking a more aggressive tone against the Islamic Republic. Beyond that, the Eurozone final CPI has confirmed previous estimation, pointing to slower price pressures, which has failed to provide any significant support to the Euro. Comments from US administration officials suggesting that President Donald Trump would be considering striking Iran, to confirm a total surrender and the end of its nuclear program, have unnerved investors. The Iranian ambassador to the UN that Iran will respond to any direct attack from the US, heightening fears of further escalation of the conflict, which favours safe-haven assets, like the US Dollar. Crude prices appreciated more than $3 on Tuesday to reach levels close to the $75.00 area, a 16% increase from May’s prices, posing additional weight on the Euro. The Eurozone is a net Crude importer, and rising prices would hurt the region’s growth prospects., The focus on Wednesday is on the Federal Reserve’s (Fed) monetary policy decision and Chairman Jerome Powell’s views on how to deal with weakening growth and potentially higher inflation. The US Dollar will be sensitive to changes in…
Filed under: News - @ June 18, 2025 4:28 pm