Energy Shock Dents EUR/USD Ahead of FOMC Rate Decision

The EUR/USD has taken a hit due to rising energy prices and a rebounding US dollar ahead of the Federal Reserve's rate decision, where a hike is now all but priced in.

The sharp decline in the pair comes despite the European Central Bank's increasingly hawkish tone. ECB President Christine Lagarde's upcoming speech could either reinforce or soften last week's message, which suggested policymakers remain open to further tightening.

Oil prices are adding to the pressure facing the EUR/USD and other FX majors. Crude prices fell on Friday but have resumed higher again after Saudi Arabia shut the East-West pipeline following drone attacks from Iraq.