Euro Surges Against US Dollar Ahead of Fed Policy Decision Amid Geopolitical Tensions
The Euro has continued its upward trend against the US Dollar (USD), trading at around 1.1390 during Asian hours on Wednesday, as investors await the Federal Reserve's policy decision.
Markets are pricing in a 30.5% chance of an immediate rate hike, but the overall expectation is for interest rates to remain unchanged, which could weigh on the US Dollar.
The heightened geopolitical tensions following the IRGC's surprise ballistic missile strike targeting a US military base in Jordan may provide some support for the USD, however, with inflationary risks and the broader interest rate outlook dominating investor focus.