EURUSD, M30
FOMC resumed its meeting, the first under Chairman Powell. Braving the weather, the Fed is unanimously expected to announce a 25 bp rate hike this afternoon at 14:00 ET, and generally maintain the gradualist approach from Yellen. However, there’s considerable uncertainty over guidance and whether the median dot for 2018 remains at 3 or is bumped up to 4, and whether the 2019 is kept at 3 as well. It will be interesting to track the mean statistic, however, to get a handle on the FOMC’s leanings. No change is expected to either this year’s or next year’s median dots, though the mean could move up slightly as policymakers boost growth outlooks and tweak the inflation view slightly higher, and lower the unemployment rate forecasts. Furthermore, the FOMC anticipated to maintain the neutral rate view at 2.75%.
Meanwhile, as the markets brace for the FOMC decision and projections, US equities are tipping lower again and dollar weakness has been in general supportive so far today. The USD edged slightly higher after the better existing home sales data, seeing EURUSD slip to 1.2279 from near 1.2295. U.S. existing home sales rose 3.0% to 5.54 mln in February, beating the forecast, following declines of 3.2% in January to 5.38 mln and 2.8% in December to 5.56 mln, something that boosted USD. However this USD strength expected to be temporary, since a Hawkish FOMC is expected later on today, that will possibly add negative momentum on the Greenback.
Nevertheless, immediate support so far today holds at 1.2270 level. However only a break below 1.2230, opens the way to 1.2100 area. Resistance level comes at 1.2300.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
[ujicountdown id=”Next Webinar” expire=”2018/03/22 12:00″ hide=”true” url=”” subscr=”” recurring=”” rectype=”second” repeats=””]
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
