The EUR/USD currency pair fluctuates around 1.1700 during Wednesday’s European session. Investors show caution amid escalating frictions between Poland and Russia. Their focus sharpens on the upcoming US inflation figures, which could provide clarity on the Federal Reserve’s monetary policy decisions.

Market activity remains subdued as traders await guidance from the inflation reports. Analysts suggest that these economic indicators will play a critical role in determining the Fed’s stance on interest rates and economic growth. The geopolitical tensions add another layer of complexity to market movements.
Understanding the interplay of these factors is essential for investors navigating the forex landscape.