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.
Read more: https://fxopen.com/blog/en/oa-forex-traders-await-the-feds-decision/
Text source: Forex Trading Blog
