#FOMCMeeting

Today all eyes are on the Federal Reserve. The FOMC is meeting to decide whether to maintain interest rates or not, and although the consensus points to no changes (they will remain between 4.25% and 4.50%), what really matters is the tone of the message and the famous dot plot.

If they reduce the projections for cuts this year, markets could react strongly. Also, with inflation still being a challenge and geopolitical conflicts pushing oil prices, the Fed has plenty of reasons to proceed with caution. Powell will speak this afternoon, and it is very likely that he will repeat his mantra: “everything depends on the data.” So, more than the decision itself, the key will be how it is communicated. This directly affects the $eurusd, so watch out for volatility.