Fed decision preview: What to expect of EUR/USD?

By FXStreet Today at 18:00 GMT the Federal Reserve will announce its decision on monetary policy and new FOMC projections will be published. Later, at 18:30 GMT, Janet Yellen will hold a press conference. Back in December 2015, when the FED rose rates for the first time in almost a decade, markets consensus pointed that at the March meeting it would rise rates again, for the second time, after taking a pause in January. But much has changed since December, with turmoil across financial markets, particularly among emerging economies, several central banks lowered interest rates and the perspectives of global and US growth were lowered.

At the January meeting the Fed did not say much, but make it clear that a decision about March was not taken and that monetary policy continues to be on a path that is “data depended”. While the labor market supports more rate hikes, inflation and the economy overall show some weakness.

Consensus points that the central bank will keep rates unchanged. Traders will also pay attention to the FOMC projections. The expectation is that now, the staff will expect an even more gradual normalization. USD is likely to move sharply, even if the FED stays …read more

Source:: FX Street