Forex Traders Await the Fed's Decision
Forex Traders Await the Fed's Decision
The Federal Reserve is set to announce its interest rate decision today at 21:00 GMT+2, with Fed Chair Jerome Powell holding a press conference 30 minutes later. According to Forex Factory, the market expects a rate cut to 4.25%-4.50% from the current 4.50%-4.75%.
Analysts at Apollo Global Management, in their Economic Outlook, predict:
→ In 2025, the Fed will continue lowering rates but at a slower pace than the market anticipates;
→ By the end of 2025, the rate is expected to settle at 4.0%.
In anticipation of today's decision, the currency markets are experiencing a period of calm.
The technical analysis of the EUR/USD chart shows that the pair consolidates between the upper boundary of a descending channel and the lower black support line, forming a narrowing triangle pattern (highlighted in purple).
Today's Fed meeting could trigger a surge in volatility, potentially driving sharp movements in USD pairs. For EUR/USD, opposite scenarios are possible:
→ An upward movement with a bullish breakout of the upper boundary of the long-term descending channel;
→ Continuation of the downtrend with a breakout below the lower black support line.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The Federal Reserve is set to announce its interest rate decision today at 21:00 GMT+2, with Fed Chair Jerome Powell holding a press conference 30 minutes later. According to Forex Factory, the market expects a rate cut to 4.25%-4.50% from the current 4.50%-4.75%.
Analysts at Apollo Global Management, in their Economic Outlook, predict:
→ In 2025, the Fed will continue lowering rates but at a slower pace than the market anticipates;
→ By the end of 2025, the rate is expected to settle at 4.0%.
In anticipation of today's decision, the currency markets are experiencing a period of calm.
The technical analysis of the EUR/USD chart shows that the pair consolidates between the upper boundary of a descending channel and the lower black support line, forming a narrowing triangle pattern (highlighted in purple).
Today's Fed meeting could trigger a surge in volatility, potentially driving sharp movements in USD pairs. For EUR/USD, opposite scenarios are possible:
→ An upward movement with a bullish breakout of the upper boundary of the long-term descending channel;
→ Continuation of the downtrend with a breakout below the lower black support line.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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