EUR/USD is in a state of anticipation before potential evening movements.
The major currency pair is treading water on Wednesday, maintaining a neutral position. The current quote for EUR/USD stands at 1.1050.
The two-day meeting of the US Federal Reserve System is coming to an end tonight. As for the interest rate decision, it is relatively clear: a 25-basis point increase is expected, bringing the borrowing cost to 5.5% per annum. However, the real intrigue lies in the Fed's forward guidance – how they envision the September meeting and the duration of any pause before considering rate reductions.
Market expectations point to an unchanged rate in September, with indications of potential monetary policy easing possibly emerging in the spring of 2024.
While speculations abound, it is wise to wait for the evening to gather all the necessary facts.
As the day progresses, the euro/dollar pair is likely to experience significant volatility.