The major currency pair remains in a neutral position on Wednesday. The current EURUSD quote is 1.1050.
The two-day meeting of the US Federal Reserve System concludes tonight. Regarding the interest rate, the outlook is relatively clear: there will be a 25-basis point increase, bringing the borrowing cost to 5.5% per annum. However, the real intrigue lies in what comes next – how the Federal Reserve envisions the September meeting and how long the pause will be before the regulator considers reducing the rate.
The prevailing market expectations suggest that the rate will remain unchanged in September, and indications for potential monetary policy easing may emerge in the spring of 2024. We can speculate endlessly, but it is prudent to wait until the evening to obtain all the necessary facts.
In the second half of the day, the euro/dollar pair is anticipated to experience noticeable volatility.