Fed Interest Rate Decision: Here’s what is known so far
According to various sources, the Federal Open Market Committee (FOMC) is widely expected to announce a rate cut today. A rate cut on Wednesday would lower the Fed’s target policy rate to a range of between 1.75% and 2.00% and dovetail with moves by central banks around the world to ease monetary policy to offset the impact of a U.S.-China trade war and other risks to the global economy.
What is Fed Interest Rate Decision and why does it matter?
The Fed Interest Rate Decision occurs when members of the FOMC meet to decide on the monetary policy of the United States. The FOMC meeting is considered to be an important event for traders, for one simple reason: interest rates. FOMC can choose to raise or lower the federal funds rate which causes US’s central rate to change which can have a big impact for traders. Traders should look mostly at the EUR/USD pair but Gold trading opportunities might also be available based on the inverse relationship between the US Dollar and Gold.
Trends for EUR/USD
Fed is set to trigger high volatility ahead of the 25 basis point rate cut that is expected today. At the time of writing, the EUR/USD pair is trading in a bear trend. The expected trading range for today is between 1.0950 support and 1.1140 resistance.