EUR/USD remains steady as Fed holds rates, markets brace for Powell appearance

💡 DMK Insight

The Fed’s decision to hold interest rates steady is a mixed bag for EUR/USD traders. While the stability in the 3.5-3.75% range suggests a cautious approach, it also means that the market’s focus will shift to upcoming economic data releases. Traders should keep an eye on inflation reports and employment figures, as these will likely dictate the Fed’s next moves. If inflation remains stubbornly high, we could see a shift in sentiment that drives the dollar stronger against the euro. On the flip side, if data points to economic weakness, the euro might gain traction as traders seek safety in European assets. Watch for key support around the recent lows; a break below could trigger further selling pressure. Conversely, a strong bounce could signal a buying opportunity, especially if the eurozone shows signs of resilience. In the coming days, keep an eye on the 1.0800 level as a critical pivot point for potential volatility.