EUR/USD remains stable below 1.0900. The economists of Commerzbank They analyze how the Fed's decision could affect the pair.
The “dot plot” is where the greatest potential for a decent Dollar move lies.
The new inflation and growth forecasts will be published, but above all the interest rate expectations of the FOMC members, the so-called 'dot plots'. I think this is where the biggest potential for a decent dollar move lies, although the issue of balance sheet normalization (quantitative tightening) will no doubt take up quite a bit of space as well.
Only the front of the points needs to shift upward to take into account current circumstances (that the Fed has become more cautious about interest rate cuts since December). This could be interpreted by the market as a confirmation of its expectations and, therefore, positive for the Dollar, although it is only a late adjustment to reality.
If there are signs that FOMC members are becoming more cautious about the timing and scope of future rate cuts, the dollar could continue to gain ground and the EUR/USD pair could slide towards the 1.0800 level..
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
