The EUR/USD pair climbed to around 1.1095 following a softer US Dollar due to Wednesday's US Federal Reserve monetary policy meeting. Mixed US economic data weighed on the dollar, including softer-than-expected August import and export prices. Additionally, Michigan's consumer confidence and lower inflation expectations affected the dollar price. On the Euro front, comments from European Central Bank Governing Council member and Central Bank of Ireland Governor Gabriel Makhlouf indicated that the central bank's operations remain uncertain, and future monetary policy decisions will be data-driven. In forthcoming trading sessions, investors will keenly observe the FOMC press conference for insights and clues from the ECB that could affect EUR/USD.

GBP/USD PRICE FORECAST: AWAITS FED-BOE DECISION

The GBP/USD pair rebounded at the 1.3000 threshold, driven by market sentiment influenced by US Dollar dynamics. Last week, August US labour market data supported the USD against its major rivals, reporting the unemployment rate at 4.2%. US PPI increased by 0.2% month-on-month in August, while core PPI rose to 0.3% and core CPI jumped 0.3% MoM versus estimates of 0.2%.

Mixed signals from economic data prompted market speculation about the size of the interest rate cut by the Fed, influencing the Greenback. On the UK side, softer UK pay growth and Gross Domestic Product data weighed on the pound. The high-impact UK data due this week and the Fed's impending interest rate decision will shape GBP/USD movement in the week ahead.

EUR/GBP DECLINES AHEAD OF EUROZONE, UK CPI DATA

The EUR/GBP slipped near 0.8435 following the European Central Bank's interest rate decision. The ECB adjusted its growth forecast for 2024 to 0.8% from an earlier projection of 0.9%, citing a weaker contribution from domestic demand over the next few quarters. Both interest rates and revised forecasts could limit the Euro's upside movement. On the Pound front, softer UK pay growth and Gross Domestic Product data weighed on the currency. However, this week's upcoming release of the UK Consumer Price Index inflation data and the Bank of England interest rate decision will drive the EUR/GBP pair in upcoming sessions.

USD/CAD WEAKENS AHEAD OF FED MEETINGS THIS WEEK

The USD/CAD pair lost ground due to the softer US Dollar after the release of the Michigan consumer sentiment index. At the same time, investors are eyeing the Federal Reserve interest rate decision on Wednesday, expecting a hawkish stance. Lower crude oil prices could swiftly weigh on the USD/CAD pair. However, the highly anticipated FOMC meeting on Wednesday and market speculation about an additional interest rate cut by the Bank of Canada could support the USD/CAD pair.

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