The EUR/USD pair fluctuates near a one-month low and is on track for its first monthly decline since December of last year. The euro remains weak, weighed down by negative reactions to the trade deal between the European Union (EU) and the United States (US).

Investors are also eyeing the latest second-quarter GDP figures from major European economies, with France growing higher than expected and Germany recording a mild contraction. Eurozone Gross Domestic Product (GDP) figures and the Federal Reserve's interest rate decision are due soon.

The euro (EUR) posted a slight recovery from a five-week low in Asia, capped at 1.1575 before weakening to the 1.1550 area during the early European session, virtually stagnant and about 2% below its July 1 high.

Moderate optimism was evident on Wednesday, with investors awaiting the Fed's decision. The US central bank is expected to keep interest rates unchanged. The event will be headlined by comments from Chairman Jerome Powell, who will assess any signs of a potential rate cut in the near future.

Wednesday's monetary policy decision will be particularly significant, as it comes after weeks of unexpected attacks by US President Donald Trump on the Fed Chair, who has called for interest rate cuts, which have raised questions about the central bank's independence.

In Europe, German Retail Sales data for June beat expectations, following stronger-than-expected French economic growth. However, the euro remains under pressure following a trade pact seen as significantly favoring the US over the EU, and which has drawn strong criticism from European countries. (alg)

Source: FXstreet