Euro Holds Steady Ahead of FOMC Decision

The euro remains in a tight band against the US dollar as investors wait for the Federal Reserve's upcoming policy decision.

A note from ING analysts suggests that the pair's range-bound behavior is due to opposing forces, including expectations of further European Central Bank rate hikes versus a resilient US economy.

The interest rate differential between the US and the eurozone is also playing a significant role in the euro's performance. The Fed is expected to hold rates steady or signal a pause, while the ECB continues to signal further tightening.