FxAnalysis

The EUR/USD pair eased from a fresh 2025 peak of 1.1878 hit on Tuesday, as investors gear up for the Federal Reserve (Fed) monetary policy announcement.

The EUR/USD pair attracts some sellers on Wednesday, snapping a two-day winning streak and eroding a part of the previous day’s strong move up to a four-year peak amid a modest US Dollar (USD) bounce.

Gold is in the red for the first time this week, correcting from record highs above $3,700 heading into the US Federal Reserve (Fed) showdown.  

The Euro (EUR) picked up fresh momentum on Tuesday, lifting EUR/USD to new 2025 highs near 1.1880. The US Dollar (USD) stayed on the defensive, with the US Dollar Index (DXY) sliding further below the 97.00 mark to flirt with its lowest levels in three years.

The record run of Gold prices continued on Tuesday, with the bright metal surpassing the $3,700 mark for the first time ever amid broad US Dollar (USD) weakness. The XAU/USD pair traded as high as $3,703.08 early in the American session.

The euro climbed to a 4-year high at 1.1878 against the dollar, with markets eyeing 1.20 if the Fed confirms a dovish outlook.