Euro sticks to losses near one-month low as USD bulls retain control ahead of Fed decision

The EUR/USD pair remains in negative territory for the fifth consecutive day, trading near its one-month low of 1.1530 on Wednesday. The focus now turns to the Federal Reserve's upcoming policy meeting, where a 25 basis point interest rate increase is expected. Economic projections and Fed Chair Kevin Warsh's comments from the post-meeting press conference are also closely watched for insights into the future direction of the US Dollar.

Inflation concerns, mainly driven by rising energy prices, suggest further Fed tightening may be on the horizon. Meanwhile, crude oil prices hit a fresh high since May 20, while a surge in borrowing causes the 10-year US Treasury bond yield to reach its highest level since April 2007. The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, remains near a two-week high, benefiting from the safe-haven status of the USD amidst escalating US-Iran tensions.

Despite the potential for intraday recovery, the EUR/USD pair is capped by the 100-day Simple Moving Average (SMA) and is likely to remain range-bound near the 50.0% Fibonacci retracement level at 1.1533.