The Federal Open Market Committee’s (FOMC) latest dot plot, released on Wednesday, indicates that interest rates will average 3.4% by the end of 2026, in line with the December projection.
The Federal Open Market Committee’s (FOMC) latest dot plot, released on Wednesday, indicates that interest rates will average 3.4% by the end of 2026, in line with the December projection.
EUR/USD drops by 0.21% on Wednesday as the Federal Reserve (Fed) left interest rates unchanged, with the Board expecting just 25 basis points of easing towards the end of the year, as depicted in the Summary of Economic Projections (SEP).
AUD/USD trades around 0.7080 on Wednesday, down 0.34% on the day, despite a broadly supportive domestic backdrop for the Australian Dollar.
GBP/USD stalled post-Federal Reserve Fed on Wednesday, cycling quickly in place after the Fed delivered a widely-anticipated interest rate hold.
ING’s Frantisek Taborsky notes that Central and Eastern European FX has benefited from improved global risk sentiment, even as elevated energy prices still imply some inflation.
Commerzbank’s Michael Pfister expects the Brazilian central bank to start its cutting cycle, with consensus looking for an initial move after a long hold at 15%. He sees scope for a 25 or 50 basis point cut and anticipates the pace to accelerate later in 2026.
EUR/USD recovers part of its earlier decline on Wednesday as the US Dollar (USD) eases slightly from daily highs, offering modest support to the Euro (EUR) ahead of the Federal Reserve’s (Fed) interest rate decision at 18:00 GMT.
BNY’s EMEA Macro Strategist Geoff Yu highlights that Latin American sovereign bonds remain the best-held global segment, with holdings still about 14% above their 12‑month average and no underheld currencies in the region.
The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, a pivotal meeting for markets to gauge the stance of the world’s most important central bank after an energy shock that could put the Fed’s dual mandate in tension.
GBP/USD falls 0.21% on Wednesday following the release of a hot US inflation report, prompting investors to cut their dovish bets on the Federal Reserve. At the time of writing, the pair trades at around 1.3320.