The EURUSD is trading flat on the day so far, hovering at 1.126 as the markets wait for the Federal Open Market Committee’s two-day meeting outcome.
US dollar was a little stronger against most G10 on Tuesday while the EURUSD pair rallied in the London session to 1.1320, only to slide down to 1.1260 in NY as data revealed a shocking truth about the path of the US inflation.
The US Producer-Price index climbed 0.8% in November, signaling that US inflation is likely to remain high well into 2022.
Fed policymakers are expected to announce they will speed up monthly bond purchases in response to inflation that continues to run hot. The statement and quarterly forecasts will be followed 30 minutes later by Chair Powell’s press conference.
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