EURUSD:Rate Cut Priced In - Can Powell Boost the Dollar Again?
From our previous analysis on EURUSD, the price created a move above the structure area, opening the door for further growth. But what could happen during the FOMC?
Could this be just a false bullish breakout, and the price could fall again?
As we have seen over the past few weeks, the US economy continues to report strong economic data. The decline in the employment number is also normal considering that it has been showing only growth in employment data for two years or more. In my opinion, these ups and downs are normal.
The market expects the FED to cut interest rates on Wednesday and the 25 basis point rate cut is already priced in. The market is mainly focused on the Interest Rate Projection and the message that Powell may share for the upcoming meeting.
Considering that Powell has been hawkish towards the USD at every meeting, it is possible that he will maintain a hawkish tone again and we could see the USD strengthen despite the current speculation.
However, it will be a volatile and risky market during the FOMC and it will be better to be cautious with all USD pairs.
You may find more details in the chart!
Thank you and Good Luck!
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