EUR/USD lingered amidst Tuesday’s market action, marking a new short-term consolidation range close to the major 1.1300 mark as traders await a reason to act. The Federal Reserve's (Fed) midweek interest rate decision is the key data event of the week, temporarily locking investor sentiment here.

The Federal Reserve's upcoming interest rate decision on Wednesday remains the main focus of markets this week. While many expect the Fed to maintain current interest rates, investors will be closely watching comments from policymakers, particularly those from Fed Chairman Jerome Powell, for any signs that a rate-cutting cycle could occur sooner than expected.

Recently, the Federal Reserve has faced increasing pressure to cut interest rates. Market participants continue to seek lower funding costs, and the Trump administration has been particularly vocal, insisting that the Federal Reserve should cut interest rates to ease the cost of servicing the U.S. debt. However, this stance conflicts with the Fed’s dual mandate of promoting maximum employment and controlling price stability, ideas that appear to be ignored by President Trump.