EUR/USD Price Forecast: 1.1500 to remain key support level for Fed’s Day
FXStreet reports that the Euro (EUR) is currently trading at around 1.1545 against the US Dollar (USD) during the early European trading session on Wednesday. The pair is expected to remain under pressure as the Federal Reserve (Fed) is scheduled to announce its monetary policy decision at 18:00 GMT. The Fed is widely anticipated to increase interest rates by 25 basis points (bps) to the 3.75%-4.00% range, due to persistent inflationary pressures well above the central bank’s 2% target.
Analysts at ABN Amro suggest that the rationale for another rate hike is primarily precautionary, aiming to prevent inflation from becoming more persistent, rather than directly bringing inflation down. EUR/USD is trading at 1.1548, holding below the 20-day exponential moving average (EMA) at 1.1590, indicating a mildly bearish near-term outlook. The key support level for the pair is identified as the psychological level of 1.1500.
Brief written by urgent.news from FXStreet's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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