The June Fed decision is here. Will they raise rates? Probably not, but any hint, change in the dot plot and word that Janet Yellen says will rock currency markets.
Valeria Bednarik, Mauricio Carrillo and I will be covering the event, beginning at 17:45 GMT. You can follow our video stream right here and some background awaits below.
Update: Fed leaves policy unchanged, lower dot-plot – USD lower
The economy was weak in Q1, but the Fed saw it as transitory. Indeed, we are seeing signs of improvement. This is probably not enough for a hike now, especially as the Fed is dovish and would not like an extremely strong dollar. Janet Yellen and co. would not like to choke the recovery too early.
But on the other hand, they would not like to be behind the curve or be blamed for bubbles. So, when will they hike? And when they will move, what will the pace be? Where is the maximum level?
All are critical questions for the US dollar.
More: The Case For Staying Short EUR/USD Into FOMC – Barclays
