FOMC Preview: EUR/USD Risks Larger Rebound on Dovish Fed Rate-Hike

Federal Open Market Committee (FOMC) to Raise Benchmark Interest Rate by 25bp to Fresh Threshold of 1.50% to 1.75%. Jerome Powell to Hold First Press Conference as Fed Chairman.

– EUR/USD Rebounds Ahead of FOMC to Preserves Monthly Opening Range. Relative Strength Index (RSI) Continues to Track Bearish Formation.

Trading the News: Federal Open Market Committee (FOMC) Interest Rate Decision

DailyFX Calendar

The Federal Open Market Committee (FOMC) interest rate decision may rattle the recent rebound in EUR/USD as the central bank is widely expected to raise the benchmark interest rate to a fresh threshold of 1.50% to 1.75%, but a dovish rate-hike may produce headwinds for the greenback as it dampens the scope for a more aggressive hiking-cycle.

Fed Fund Forecast

Market participants are likely to pay increased attention to the updated forecast coming out of the FOMC as the committee appears to be on track to further normalize monetary policy over the coming months. Chairman Jerome Powell and Co. may continue to prepare U.S. households and businesses for higher borrowing-costs as ‘a majority of participants noted that a stronger outlook for economic growth raised the likelihood that further gradual

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