Forex trading. Euro-Dollar EUR/USD forecast for today, September 23, 2021
On Wednesday, the euro/dollar fell to the support level of 1.1700 after the announcement of the results of the Fed meeting.
Members of the Open Market Operations Committee believe that the regulator will raise the federal funds rate at least three times in 2023. The previous forecast published in June suggested only two rate hikes. Nine FOMC members believe that the first rate increase will take place next year, and the remaining nine expect changes in a year.
As expected, the Committee openly hinted that the reduction of the asset purchase program will begin before the end of this year. The majority of experts surveyed by Bloomberg believe that this will be officially announced at the next meeting of the regulator in November. If progress towards achieving the goal of an average inflation rate of 2% and maximum employment continues in line with expectations, then the reduction of the asset purchase program may soon be justified, the FOMC said in a statement. The Committee raised the forecast of core inflation in the United States in 2021 and 2022 from 3% and 2.1% to 3.7% and 2.3%, respectively. The forecast for the growth of the US economy this year was lowered from June 7% to 5.9%. A similar forecast for 2022 is 3.8%. In general, the results of the meeting supported the demand for the US currency, although the Fed's statement was largely expected.
The forecast assumes a further decline in the euro/dollar exchange rate to the support levels of 1.1680, 1.1660 and 1.1630.