Old continent’s currency has been highly favored by forex traders with a massive 6% jump in just a couple of weeks.

💎 Euro Rises to Six-Month High

• The EURUSD pair hit a fresh six-month peak at $1.0945 Wednesday morning and immediately regretted this decision. Or at least that’s what it looked like — the euro curled up and pulled back by more than 50 pips to hit a session low of $1.0872. Worth saying, there was a previous top acting as a mid-term resistance.
• Going back to the US Presidential Election on November 5, the euro was casually climbing before it got knocked by the dollar’s punch as traders celebrated Trump’s winning the White House.

👑 No More Dollar Kingdom?

• Fast forward, this dip is over — after the euro-dollar fell 7% to $1.0176 in mid-January, all dollar gains after the election are gone and the euro is once again on its quest to higher grounds. How high can it go? That immediate resistance will be acting as a gauge for the trend, at least in the short term.
• The euro has rocketed upward by more than 6% in just a couple of weeks as the forex narrative has shunned the dollar from the limelight amid Trump’s back-and-forth tariff drama causing global uncertainty.

🧐 Fed Rate Decision Coming Today

• But none of that will matter later today when the Federal Reserve enters the chat to give forex markets a good shake. The central bank is wrapping up its rate-setting meeting and Fed boss Jay Powell will appear for a press conference with the decision and, more importantly, the bank’s guidance.
• While market expectations are leaning toward a hold of borrowing costs (no rate cut), Powell’s words on the way forward (maybe rate cut?) will be keenly anticipated by traders who fear that Trump’s hostile policies may flare up inflation and prompt the Fed to roll back its rate-cutting campaign (no rate cut?).