EUR/USD Gains $1.10 Ahead of Fed's Interest Rate Determination

The Federal Reserve is anticipated to increase interest rates by 25 basis points. What will occur with the EUR/USD pair?

The EUR/USD is consolidating quickly advance of a major market-moving event. Instead, the euro is fighting to recover its losses from the previous week. After reaching a two-week low of $1.0942 yesterday, the European currency has risen this morning to levels above $1.1030.

The volatility train is in full swing today, and both currencies are likely to react to a closely-watched economic report. It's Payday! The Federal Reserve is concluding its two-day meeting with the announcement of a rate decision by none other than Fed chairman Jerome Powell.

Analysts anticipate a modest rate increase of 25 basis points. If confirmed, the EUR/USD may have little difficulty adjusting its exchange rate to account for the increase. If the Fed stops raising interest rates, the dollar may experience a significant reaction as investors adjust their portfolios accordingly.