On Wednesday afternoon, the main currency pair is trading on volumes below average levels in anticipation of the Fed's verdicts.
The euro/dollar is marking time on Wednesday, and in anticipation of the completion of the two-day meeting of the US Federal Reserve barely anyone wants to take risks. The current quote in the main currency pair is 1.0873.
So, the first in this year's meeting of the Monetary Committee will finish at 19.00 GMT. This time there are no expectations from the Fed to make decisions to raise interest rates, but their comments regarding the financial situation in the country may be interesting, as well as hints on the future steps.
The Fed changed the interest rate a month ago, in December 2015. Then its raise was expected by the markets for a few months. Now we are very interested in the text accompanying statement from the FOMC, in which bidders will be looking for any indication - visible or implicit - on the timing of future rate increases. Or, a direct indication of a pause in the tightening that now would be the most logical.
In January of this year, there are a few changes the composition of the voting members of the Fed. It almost never has any effect on the final decision, but subsequent comments of these individuals will move the capital markets more than before.
The general tone of the accompanying statement is likely to be very soft. The weaker the Fed comments, the more the dollar is likely to weaken in the moment. Globally, this does not change anything.
RoboForex Analytical Department
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