EUR/USD Price Forecast: Holds above 1.1700 as USD bulls seem hesitant ahead of FOMC meeting

EUR/USD is holding above 1.1700 as the U.S. dollar shows signs of consolidation ahead of the Federal Open Market Committee (FOMC) meeting, with traders exhibiting caution amid elevated uncertainty about near-term monetary policy direction. The hesitation in USD momentum reflects a pause in rate differential repricing, as markets await clearer signals on inflation and rate path guidance from the Fed. This has limited downside pressure on EUR/USD, with the euro benefiting from relative stability in risk appetite and reduced immediate concerns over European energy supply disruptions. The pair remains sensitive to shifts in U.S. real yields and Fed rhetoric, making it vulnerable to hawkish surprises or dovish pushback during the FOMC statement and press conference. Traders will closely watch the updated Summary of Economic Projections and Chair Powell’s comments for clues on the pace of future rate adjustments.

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