EURUSD is falling pressured by the “greenback”; market players are focused on the Fed meeting.
The major currency pair is falling on Wednesday. The current quote for the instrument is 0.9927.
All investors are focused on the Fed’s meeting to be over later in the evening, where the regulator is expected to announce its rate decision. The rate will be raised, the question is by how much.
The key scenario implies a 75-point rate hike – 85% of investors think this way. Other 15% believes in a more positive variant that offers a 100-point increase.
If the Fed raises the rate by 1%, the “greenback” will get a signal for an immediate bullish rally. However, if it happens, investors will be caught up in a dilemma – will the other global central banks be able to catch up with the Fed or will be Fed itself be able to keep its own pace?
If the Fed decides to stick to a conservative approach and raises the rate by 50 basis points, the “greenback” will be shocked.
As usual, not only the regulator’s comments will be important – market players will be considering everything. The evening is promising to be volatile.