The market's most traded currency pair is full of expectations on Wednesday. The current EURUSD quote is 1.0780.
The two-day meeting of the US Federal Reserve System will end tonight. Monetary policymakers are likely to decide to pause the series of interest rate increases for the first time in 15 months. At the same time, they will remain inclined towards a tight credit and monetary policy.
Earlier, Federal Reserve Head Jerome Powell made it clear that the regulator would prefer to postpone further rate increases to assess the effect of previous moves on the economy. Furthermore, the bank failures that have occurred make us wonder about the point of impact on what is happening.
With inflation currently more than double the target level, the Fed will most likely stress that it is leaving the door open for another rate hike in July or September. The interest rate now stands at 5.25% per annum. It will remain as it is, or at least this is the expectation of the market.
Volatility in EURUSD will increase in the afternoon, so caution is advised.