EUR/USD holds steady above mid-1.0500s, looks to FOMC for fresh directional impetus

Share:

• EUR/USD finds support ahead of the mid-1.0500s, though struggles to attract any buyers
• The USD pauses after the previous day’s strong move up and lends some support to the pair.
• Expectations that the ECB is done raising rates undermine the Euro and act as a headwind.
• Investors now look to the US macro data for a fresh impetus ahead of the FOMC decision.

The EUR/USD pair oscillates in a narrow band during the Asian session on Wednesday and for now, seems to have stalled the previous day’s sharp retracement slide from the 1.0675 region, or a one-week high. Spot prices manage to hold above mid-1.0500s, though the fundamental backdrop warrants some caution before positioning for any meaningful appreciating move.