|

EUR/USD struggles to extend recovery above 1.1550, Fed’s policy remains in focus

  • EUR/USD faces pressure near 1.1550 as investors await the Fed’s monetary policy outcome.
  • The Fed and the ECB are unlikely to make any monetary policy adjustment.
  • Higher oil prices amid Iran-related conflicts have prompted inflation expectations globally.

The EUR/USD pair faces slight pressure near 1.1550 during the European trading session on Wednesday after a two-day recovery move. The major currency pair struggles as the US Dollar strives to regain ground ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, strives for a temporary support near 99.50 after correcting in the last two trading days.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.09%-0.04%-0.11%0.08%-0.10%0.03%0.25%
EUR-0.09%-0.12%-0.16%-0.02%-0.20%-0.09%0.15%
GBP0.04%0.12%-0.06%0.11%-0.06%0.04%0.26%
JPY0.11%0.16%0.06%0.17%-0.01%0.08%0.30%
CAD-0.08%0.02%-0.11%-0.17%-0.19%-0.08%0.15%
AUD0.10%0.20%0.06%0.00%0.19%0.11%0.34%
NZD-0.03%0.09%-0.04%-0.08%0.08%-0.11%0.22%
CHF-0.25%-0.15%-0.26%-0.30%-0.15%-0.34%-0.22%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

In the policy meeting, the Fed is certain to leave interest rates unchanged in the current range of 3.50%-3.75%, according to the CME FedWatch tool. The Fed is expected to ignore any monetary policy adjustment as inflation expectations have accelerated globally amid higher oil prices due to the Iran conflicts.

As the Fed is widely anticipated to hold interest rates steady, the major trigger for the US Dollar’s outlook will be the Fed’s dot plot and Chairman Jerome Powell’s press conference.

The Fed’s dot plot, a tool that shows where policymakers collectively see the Federal Fund Rate heading in the near-to-longer term, will be closely tracked to get fresh cues on the US interest rate outlook.

Meanwhile, the Euro (EUR) trades broadly lower ahead of the European Central Bank’s (ECB) monetary policy announcement on Thursday. The ECB is also expected to leave interest rates unchanged as inflationary pressures in the Eurozone economy have remained broadly close to the 2% target for a longer period.

Economic Indicator

ECB Rate On Deposit Facility

One of the European Central Bank's three key interest rates, the rate on the deposit facility, is the rate at which banks earn interest when they deposit funds with the ECB. It is announced by the European Central Bank at each of its eight scheduled annual meetings.

Read more.

Next release: Thu Mar 19, 2026 13:15

Frequency: Irregular

Consensus: 2%

Previous: 2%

Source: European Central Bank

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

More from Sagar Dua
Share:

Editor's Picks

AUD/USD meets support near 0.7150

AUD/USD comes under renewed and quite strong selling pressure ahead of the Asia opening bell on Friday, drifting back toward multi-day troughs near 0.7150, where it seems to have met some decent contention for now. The Aussie’s decline follows the inflation-reignited uptick in the Greenback in response to robust US factory-gate prices in August.


USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains weak, retargets $4,350

Gold keeps the choppy price action on Thursday, now slipping back toward the $4,350 region per troy ounce amid the robust bounce in the US Dollar as well as rising US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

Bitcoin and Gold Outlook: BTC and XAU drop as US PPI broadens rate-hike bets
Cryptocurrency prices are broadly correcting, led by Bitcoin (BTC), which is trading around $77,000 on Thursday, marking four consecutive days of declines. Meanwhile, Gold (XAU) remains sideways, hovering around $4,365, with upside capped below $4,400.
ECB recap: A hawkish hike despite downside growth risks
The European Central Bank (ECB) increased the Deposit Facility Rate to 2.50%, the Refinancing Rate to 2.65% and the Marginal Lending Facility to 2.90%, effective from September 16. The decision was accompanied by a clear warning that the outlook remains highly uncertain, with risks tilted to the upside for inflation and to the downside for growth.
Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.
EUR/USD struggles to extend recovery above 1.1550, Fed’s policy remains in focus