Euro Targets $1.15 as Fed Hawkishness Looms

The euro's upward momentum continued on Tuesday as it approached the critical $1.15 level against the US dollar.

This move is being driven in part by expectations of a hawkish note from the Federal Reserve later in the day, which could test the currency's strength at this key threshold.

However, the bloc's status as a net energy importer makes it vulnerable to higher oil prices, particularly with the recent re-escalation of tensions between Iran and other global powers.

The US Treasury yields are also expected to rise, but the impact on the EUR/USD pair is likely to be limited, given that European bond yields have sold off to a similar extent as their American counterparts.