Europe Divided Against Dollar: Euro-Pound Fall, Swiss Franc Rises
Jakarta, CNBC Indonesia - European currencies moved mixed against the United States (US) dollar in afternoon trade on Wednesday (17/6/2026). Movements tended to be limited as market participants awaited the Federal Reserve’s interest rate decision.
Based on Refinitiv data as of 14.00 WIB, the majority of European currencies weakened against the US dollar. Of six currencies, four experienced depreciation, while two others managed to strengthen.
The deepest declines occurred in the British pound sterling and the Norwegian krone, both falling 0.08%. The pound sterling stood at GBP 0.745/US, whiletheNorwegiankronewasatNOK9.48/US.
The Turkish lira also weakened 0.06% to TRY 46.314/US, followedbytheeurowhichcorrectedslightlyby0.02.
Meanwhile, the Swiss franc and Swedish krona were the two European currencies able to strengthen. The Swiss franc rose 0.14% to CHF 0.7918/US, whiletheSwedishkronastrengthened0.14.
On the other hand, the US dollar index (DXY) moved nearly stagnant with a slight increase of 0.01% to 99.548. This condition indicates market participants have not yet aggressively entered the US dollar ahead of the Fed’s policy announcement under the leadership of new Chair Kevin Warsh.
Based on CME FedWatch monitoring, the Fed is expected to hold interest rates at this meeting. However, market attention will focus on the official statement, economic projections, and Warsh’s press conference.
The market wants to see whether the Fed is beginning to abandon its bias towards policy easing, especially as inflation risks still loom. A more cautious or hawkish policy tone could potentially support the US dollar again.
Erik Weisman, chief economist and portfolio manager at MFS Investment Management, said the Fed is likely to signal a neutral stance on the direction of future monetary policy.
“Warsh will face many questions about how he will steer the Fed in the direction he has been hinting at. This is still an early stage. The new Fed Chair may still be gauging the committee’s stance that he must embrace to execute policy well. He may not yet want to make statements without first building consensus within the Fed,” Weisman said, as quoted by Reuters on Wednesday (17/6/2026).
Under these conditions, European currency movements this afternoon remain restrained. Investors prefer to wait for the Fed’s policy direction before taking larger positions in the foreign exchange market.