Article By RoboForex.com
The EUR/USD is not changing a lot today. The pair is currently trading at 1.1770. As the two-day Fed meeting is coming to an end, the market is focusing on it sharply. The interest rate hike probability is 100%, and there’s not much about it. The rate will be most likely pushed to the target range of 2.00%-2.25%, i.e. +25 basic points.
What holds the market in suspence is what Jerome Powell is going to say on the press conference. First, the investors want to know whether the fourth hike is possible after the Dec meeting and whether the US economy is ready for it. Second, the governor’s estimations on the manufacturing production and exports are very interesting, too. Besides, while the job market and inflation are looking good, the Fed official review can also be valuable for the markets.
The Fed has been cutting the QE over this year, reducing the amounts of the debt securities being bought. The sales performed each month are not that large-scaled, but the US central bank may increase them anytime, which would make the greenback stronger.
The more hawkish Powell is today, the better for the US dollar. The details are going to be important, too.
Article By RoboForex.com
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