USD Steady as Fed Holds Rates; Tech Earnings Drive Risk Sentiment

The US dollar traded in a mixed range this week as the Federal Reserve held interest rates steady, reinforcing its patient stance on monetary policy amid evolving economic conditions. The decision, widely anticipated by markets, kept the federal funds rate unchanged, providing limited directional impetus for USD pairs. Risk sentiment was influenced by divergent tech earnings, with Amazon's strong results boosting equity markets and risk-on flows, while Apple's disappointing report tempered enthusiasm. The S&P 500 posted weekly gains, which generally weighed on safe-haven demand for the dollar and Japanese yen. EUR/USD and GBP/USD saw modest upside as the greenback softened slightly on the risk-positive equity backdrop. USD/JPY edged higher as yen demand weakened alongside improved risk appetite. Traders should monitor upcoming US economic data releases for further clues on the Fed's rate trajectory. Near-term, the dollar remains range-bound, with the Fed's data-dependent approach keeping markets in a holding pattern until clearer signals on inflation and employment emerge.