Middle East Tensions Trigger Cautious Market Approach Ahead of Fed Decision

Financial markets turned cautious mid-week as escalating tensions in the Middle East pushed investors toward safer assets.

Market participants remained on the sidelines ahead of the Federal Reserve's interest rate decision and accompanying policy statement, due later in the American trading session.

The cautious approach kept major currency pairs within relatively narrow trading ranges during the European session.

The US Dollar Index struggled to gain from the broader risk-averse mood, remaining steady at around 101.30 during the European session.