- EUR/USD softens to around 1.1465 in Thursday’s Asian session.
- The Fed held rates again, expecting two rate cuts by year-end.
- Traders will take more cues from the speeches from the ECB policymakers.
The EUR/USD pair extends the decline to near 1.1465 during the Asian session on Thursday. The Euro (EUR) weakens against the Greenback amid the risk-off mood due to rising geopolitical tensions in the Middle East. Traders await the speeches from the European Central Bank (ECB) policymakers later on Thursday for fresh impetus, including Christine Lagarde, Joachim Nagel and Luis de Guindos.
The US Federal Reserve (Fed) kept its key borrowing rate targeted in a range between 4.25%-4.50% at its June meeting on Wednesday, where it has been since December. The US central bank signaled a slower pace of cuts in the future amid concern that US President Donald Trump’s tariffs could push up consumer prices. The Federal Open Market Committee (FOMC) expects to deliver two rate cuts later this year, according to the “dot plot.”
Bloomberg reported early Thursday that US officials are preparing for a possible strike on Iran in the coming days. Some of the people pointed to potential plans for a weekend strike. The fear that direct US involvement would widen the conflict underpins the safe-haven currency like the US Dollar (USD) and acts as a headwind for the major pair.
On the other hand, the hawkish remarks from the European Central Bank (ECB) policymakers might help limit the shared currency’s losses. ECB President Christine Lagarde said that rate reductions are coming to an end as the central bank is now “in a good position” to deal with prevailing uncertainties.
