On Wednesday, EURUSD is growing. The current quote is 1.0770.
Today is a big day. This evening, the US Fed will close probably the most unpredictable meeting of recent times. The regulator needs to make a difficult decision: whether it should lift the interest rate by 25 base points and continue fighting with inflation or whether it should make a pause and let the banking sector come to senses.
The latest market comments show that the first scenario looks more realistic. The US have already announced that their banking sector is all right and under no threat. According to the CME FedWatch monitoring, 72% of investors are expecting the interest rate to grow by 25 base points today.
The growth of the rate normally supports the USD but this time things may go the other way round. If Jerome Powell points out any risks of the economic decline, taking profit in the USD might speed up.
The US economic system has more and more problems working with the interest rate so high, and the idea that it might grow even higher makes no one happy.
Source: Roboforex
