EUR/USD Pauses at 1.1485 Amid Fed Rate Hike and Middle East Tensions
The EUR/USD pair has made modest gains near 1.1485 in the early Asian session on Monday, but its upside potential may be limited due to the US Federal Reserve's recent rate hike and ongoing Middle East tensions.
According to ECB Vice President Boris Vujcic, market bets on further interest rate hikes are being driven by higher energy prices, but policymakers will consider a broader set of economic indicators when deciding their next moves.
The Fed raised interest rates by a quarter-percentage point at its September meeting and signaled more hikes in the coming months. This hawkish stance could continue to support the US dollar and put pressure on the EUR/USD pair.
Technical analysis suggests that the pair is hovering just above the lower Bollinger band support, with a potential break below this level opening the door to fresh lows.