EUR/USD running for 1.0750 ahead of FOMC decision

As markets position themselves ahead of the Fed, the EUR/USD was breaking to the upside. The Fed is anticipated to maintain current interest rates and provide an updated economic forecast.

30 minutes following the release of the data, Fed Chair Jerome Powell will attend a press conference. In the lead-up to the Fed’s announcement tonight, the EUR/USD is moving higher and aiming for the 1.0750 mark. At the time of writing, the price of the pair is 1.0733.

Throughout the whole Wednesday trading day, the US dollar has been losing ground against the Euro as investors wait for the Fed’s upcoming rate decision and the latest ‘dot plot’ projections.

Markets anticipate that the Fed will maintain its benchmark interest rate range of 5.25% to 5.5%, but the key to the Fed’s decision today will be its revised Summary of Economic Projections (SEP). 40% of market participants still anticipate one more rate hike this year, but investors’ expectations for the Fed’s actions in the coming months remain split.

During the Thursday market session, the president of the European Central Bank (ECB), Christine Lagarde, is scheduled to deliver a speech. At the Mediterranean conference taking place in Marseilles, ECB President Lagarde will give a speech.

The US and Eurozone Purchasing Manager Index (PMI) statistics will be released on Friday as well, finishing off an eventful midweek.

The PMIs for the pan-European economic region are anticipated to be mixed, with a little fall in the composite reading from 46.7 to 46.5. The PMIs are expected to rise, albeit slowly, in the US. The US manufacturing PMI is expected to rise from 47.9 to 48.0, and the services PMI is anticipated to rise from 50.5 to 50.5.