Everything is at a standstill ahead of the Fed meeting. Overview for 20.09.2023

20 сентября 2023 - Fx4News

The major currency pair is as motionless on Wednesday as it was on Tuesday. The current EURUSD exchange rate stands at 1.0684.

Today is the most crucial day of the month as it marks the conclusion of the US Federal Reserve's two-day meeting. In the evening, the Fed will announce its decision regarding the interest rate, and there is almost a one hundred per cent likelihood that the rate will remain at 5.5% per annum. However, the market's attention is on subsequent comments from the Fed, awaiting hints about the regulator's future actions.

Before the speech of the Federal Reserve chair Jerome Powell, market activity might remain subdued, but increased volatility is expected immediately after.

It is possible that the Fed will point out signs of accelerating inflation and relative confidence in the labour market as reasons to consider raising rates in November. In such a scenario, the US dollar could strengthen.

All eyes are now on the Fed.