The currency pair stabilizes at lows ahead of the Federal Reserve’s July meeting after softer energy prices ease rate hike expectations.
EUR/USD trades at 1.1369 as July concludes, remaining near recent lows. A modest decline in energy prices on Friday reduced speculation that the Federal Reserve would raise interest rates at its upcoming meeting on Tuesday and Wednesday.
The pair has struggled to regain momentum after a sharp drop earlier in the month, reflecting broader USD strength. Market consensus had previously priced in a potential rate hike, but softer inflation signals and weaker commodity prices have tempered those expectations.
Traders are now focused on the Fed’s policy decision and accompanying commentary for further direction.