EUR/USD approaches the key 1.1400 support with Flash PMIs and US-Iran talks in focus

EUR/USD is edging toward the key 1.1400 support level as traders weigh the latest U.S. and Eurozone signals. The dollar strengthened after the Fed was read as more hawkish, even though its projected rate path looked more dovish than market expectations. The Fed raised rates by 25 bps unanimously and removed language about inflation staying elevated due to supply shocks, while the dot plot pointed to only one more hike in 2026 and higher rates through 2027 before cuts in 2028. For the euro, the ECB’s last decision lifted the deposit rate to 2.50% and reflected concern that Middle East-driven energy pressures could keep inflation elevated longer, making forthcoming PMIs pivotal.