EURUSD continues growing in the middle of the week in anticipation of another round of loosening the US Federal Reserve monetary policy.
The major currency pair is moving upwards on Wednesday afternoon the current quote for the instrument is 1.1120.
Today is a very important day for EURUSD. In the afternoon, the USA is set to report on the GDP for the third quarter, which may spring unpleasant surprises. Market expectations are +1.6% q/q in the third quarter after +2.0% q/q the quarter before.
The weaker the GDP reading, the worse of the USD. If the economy does slow down, it means that the regulator is on the right path by stimulating it.
In the evening, the Fed two-day meeting will be over. According to the CME, American monetary policymakers are anticipated to cut the interest rate down to 1.50-1.75%. However, it’s not what really interests investors. As a matter of fact, they want to find any signs and hints at further changes in the Fed’s policy. If the regulator is ready to continue loosening its monetary policy, it will mean that the White House’s lobby is pretty strong and then the next rate cut may happen in December.
Of course, this is very important for the USD, that’s why it may become more volatile after the meeting.