Markets brace for the FOMC rate decision, with major currency pairs testing critical technical levels ahead of the announcement.
The Federal Reserve’s rate decision is imminent, with traders closely monitoring major currency pairs for potential volatility. EUR/USD, USD/JPY, GBP/USD, USD/CHF, and USD/CAD are all at pivotal technical levels, with biases, risks, and targets outlined for each pair ahead of the announcement.
Expectations lean toward no policy change, though the Fed retains the option to tighten if needed. Crude oil futures surged to new highs after inventories fell by 7.167M barrels, exceeding the 1.272M estimate. Meanwhile, USDCAD trades lower, threatening a break of moving average support, while gold tests the $4,000 level.
Market sentiment remains cautious as London and European traders exit positions, with geopolitical tensions and Fed uncertainty weighing on risk appetite. Chips and AI stocks extend losses, eroding earlier gains.