USD: The dollar remains broadly supported heading into this week’s Federal Reserve meeting. Recent US economic data has continued to reinforce expectations that the Fed will maintain a restrictive policy stance, helping to underpin USD demand. While market participants are unlikely to expect an immediate policy shift, any guidance around rates and inflation will be closely watched.

 

EUR: The euro remains under pressure against the dollar, with EUR/USD trading back near monthly lows. The move is largely being driven by USD resilience ahead of the Fed rather than any significant deterioration in eurozone fundamentals. While expectations for ECB policy remain relatively stable, the single currency is struggling to gain traction against a firm dollar backdrop.

 

GBP: Sterling continues to trade with a softer tone, hovering around the 1.3300 level and appearing vulnerable ahead of upcoming central bank decisions. With both the Fed and Bank of England meetings approaching, traders remain cautious. GBP is also underperforming against the euro, suggesting that weakness is coming more from sterling than broad euro strength. In the near term, the pound remains sensitive to policy expectations and broader USD direction.