The U.S. dollar wobbled near a one-month high on Wednesday ahead of the Federal Reserve's policy decision, while the euro was poised to snap its run of six straight monthly gains as investors counted the cost of the U.

The euro hit a one-month low against the dollar on Tuesday, 29 July 2025 as investors sobered up to the fact that terms of the trade deal between the US and the European Union favoured the former and did little for the bloc's economic outlook.

The U.S. dollar rose for a second day on Tuesday, buoyed by a newly inked trade agreement between the United States and the European Union. Meanwhile, the euro continued its slide as investors reassessed the implications of the deal and looked ahead to the Federal Reserve’s policy meeting.