EURUSD is going to have a quite emotional trading session On Wednesday.
The major currency pair is saving strengths on the final day of the US fed’s session. The current quote for the instrument is 1.1731.
The key highlight everybody is focused right now on is a two-day meeting of the US Federal Reserve System that will be over today. Unlike many times in the past, no one really cares about the regulator’s interest rates, which are expected to remain at zero. The thing that intrigues most is the specifics of a possible earlier reduction of the QE program – when and by how much. The clearer the Fed’s comments and intentions, the better for the USD.
It will mean that the regulator is psyching itself up for the stimulus reduction with great concentration. Consequently, the rates will also be revised sooner than expected. All this can really support the “greenback”. If it happens, of course.
However, it might happen only in the evening.
In the meanwhile, market players are analysing comments from the ECB representatives. European monetary policymakers still believe that the inflation boost was temporary. However, the number of those who are confident in a further price surge is also growing. we remind you that inflation in the Euro Area was
3% in August and, according to the latest expectations, may reach 3.5% by November. However, the ECB is expected to quickly decline after that and return to 2% as before.
At the same time, there are doubts about such an optimistic forecast due to, for example, a surge in commodity prices, delays in delivery, and shortage of manpower.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.