Euro Stalls at 1.1400 as Fed Decision Looms, Oil Prices Surge
The Euro struggled to breach the 1.1400 level against the US Dollar on Wednesday as traders awaited the Federal Reserve's interest rate decision at 18:00 GMT.
US President Donald Trump's remarks on potential military action against Tehran sent the US Dollar initially higher, but it later gave up some of its advance as investors took a wait-and-see approach ahead of the Fed's announcement.
The risk of a rate hike remains on the table if policymakers decide that a stronger response is needed to contain energy-driven inflation. The CME FedWatch Tool shows traders price in around a 30% chance of a 25-basis-point increase.
A surprise rate hike would strengthen the US Dollar and put fresh selling pressure on EUR/USD, while a less hawkish message could weigh on the Greenback and help EUR/USD reclaim the psychological 1.1400 mark.