EUR/USD consolidated below the two-month peak of 1.1614 reached the previous day, pulling back amid cautious investor sentiment ahead of the Federal Open Market Committee (FOMC) minutes, FX Street reported.
Chris Turner from ING noted that the pair remained contained after stalling just above the 1.16 level. Investor caution stems from elevated natural gas prices and the anticipation surrounding the FOMC's upcoming policy insights. Turner expects the EUR/USD to trade within a 1.1520–1.1580 range in the near term, while higher energy costs continue to support expectations for European Central Bank (ECB) rate hikes.
For Japanese investors, monitoring EUR/USD movements is crucial as fluctuations in the euro-dollar pair can influence risk appetite and capital flows in Asia's FX markets, especially with central bank policies in focus globally.