The Dollar Slightly Strengthened after the Fed Meeting
FXOpen
Yesterday’s Fed meeting proceeded in line with expert forecasts. The base interest rate remained at 4.50%. Jerome Powell, who spoke after the Fed’s decision was announced, did not clarify the future direction of monetary policy. The head of the US regulator, in particular, noted that the Fed would not rush to cut rates and that, in order to change the course of monetary policy, real progress in reducing inflation needed to be seen.
GBP/USD
The GBP/USD currency pair tested key support at 1.2400 yesterday. At the moment, the price is holding above this level, and if positive news for the pound emerges, the pair could rise towards recent highs at 1.2530–1.2500.
If GBP/USD buyers manage to consolidate the price above 1.2570 in the coming trading sessions, the pair may continue to rise towards 1.2660–1.2610. A break below the 1.2400 support level could trigger a renewed decline towards 1.2320–1.2260.
Key events that could influence GBP/USD movements:
- Today at 12:30 (GMT+2): Bank of England consumer credit data
- Today at 16:30 (GMT+2): US GDP
- Today at 16:30 (GMT+2): US initial jobless claims
- Tomorrow at 16:30 (GMT+2): US core personal consumption expenditure price index
EUR/USD
The EUR/USD currency pair fell below 1.0400 yesterday following the Fed’s rate decision. However, euro buyers managed to push the price back up to 1.0440. Today is another important day for EUR/USD in terms of fundamentals. Analysts predict that the ECB may lower the base interest rate from 3.15% to 2.90%. Comments from Christine Lagarde on the regulator’s future monetary policy will also be significant.
If incoming data is perceived as positive for EUR/USD, the price could once again test key resistance at 1.0540–1.0500. A break below yesterday’s low could trigger a renewed decline towards 1.0300–1.0240.
Key events that could influence EUR/USD pricing:
- Today at 12:00 (GMT+2): Germany GDP
- Today at 16:15 (GMT+2): ECB interest rate decision
- Today at 16:45 (GMT+2): ECB press conference
- Tomorrow at 16:00 (GMT+2): Germany consumer price index (CPI)
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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