Traders pause ahead of FOMC minutes after overnight US-Iran military exchanges rattled risk sentiment and pressured the euro.
EUR/USD stabilized above 1.1400 on Wednesday after retreating from earlier highs as investors weighed escalating US-Iran tensions. Overnight exchanges of fire near the Strait of Hormuz followed attacks on commercial vessels, prompting caution in currency markets.
The pair had faced selling pressure earlier in the session but found support as traders awaited the release of Federal Open Market Committee minutes later in the day. Prior sessions saw the euro trade as high as 1.1450 before geopolitical risks curbed appetite for risk assets.
Markets showed muted reaction to the developments, with focus shifting to potential signals from the FOMC on future monetary policy adjustments.