EUR/USD Consolidates Near 1.1473 as Widening Fed-ECB Rate Divergence Weighs

EUR/USD traded around 1.1473 on Monday, hovering near levels last seen in late July as the pair stabilized following a sell-off. The pressure stems from policy divergence after the Federal Reserve lifted its target range by 25 basis points to 3.75%–4.00%, signaling a 4.1% peak rate. Although the European Central Bank also enacted a 25 basis point hike to bring its deposit facility rate to 2.50%, the move left a 150 basis point differential favoring the dollar. Downside momentum has moderated near technical support in the mid-to-upper 1.14s, though analysts warn a break below 1.1450 risks further declines toward 1.1400.