- EUR/USD breaks higher, as markets position themselves awaiting the Fed.
- The Fed is expected to keep interest rates unchanged and update the economic outlook.
- Fed Chair Jerome Powell will hold a press conference 30 minutes after the data is released.
The pair EUR/USD is rising ahead of today’s meeting of the Federal Reserve (Fed), reaching the level of 1.0750. He US dollar (USD) has been giving ground to Euro (EUR) throughout the session on Wednesday, as investors prepare for the Fed’s next rate call and updated “dot plot” projections.
Next: Fed rate, outlook and press conference
Markets generally expect the Fed to keep its benchmark interest rate band unchanged at 5.25% – 5.5%, but the key to today’s action from the Fed will be the update of its Summary of Economic Projections (SEP). ). The Fed’s forecasts for the rest of the year remain mixed, with 40% of market participants still expecting one more rate hike this year.
Elsewhere on the agenda, European Central Bank (ECB) President Christine Lagarde is scheduled to give a speech during Thursday’s market session. Lagarde, president of the ECB, will speak at the Mediterranean meetings held in Marseille.
The Purchasing Managers’ Index (PMI) data from the Eurozone and the United States will also be published on Friday, which will limit a week full of activity.
The PMI indices of the pan-European economic zone will show mixed results, with a slight decrease in the composite index from 46.7 to 46.5 points.
In the United States, a slight rebound in PMIs is expected. The manufacturing PMI is expected to go from 47.9 to 48.0 points, and the services PMI is expected to experience a similar improvement, from 50.5 to 50.5 points.
EUR/USD Technical Outlook
The EUR/USD pair is bouncing ahead of Wednesday’s pre-Fed action, rising above the 200 hourly SMA to claim territory above 1.0730. The pair started Wednesday’s session near 1.0680 and has only risen as Dollar traders maintain their orders.
In the daily candles, the EUR/USD pair has been gaining bullish momentum from the recent low near 1.0650, but the pair is facing a descending trend line from the last July high near 1.1250. Continuation of bullish pressure will also have to contend with the 200-day SMA, which currently sits just below 1.0850.
EUR/USD Daily Chart
EUR/USD technical levels
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.
