Euro Stays Below 1.16 Against Dollar Ahead of Fed Meeting

The euro remained below 1.16 against the U.S. dollar as investors focused on the Federal Reserve’s upcoming policy meeting. According to Jin10, ING analyst Chris Turner said the Fed meeting could matter more for the EUR/USD exchange rate than the European Central Bank’s rate hike decision on Thursday. Turner said the ECB had signaled further rate increases, and markets were speculating about another hike in July. However, he added that the market had already priced in an aggressive ECB tightening cycle and was reluctant to push those expectations higher, keeping the euro below 1.16. He also said markets believed the Fed could raise rates later this year. Turner said that unless the Fed pushed back against that expectation at Wednesday’s meeting, the dollar should remain firm.