Alongside indices in the United States, EURUSD traded higher on Wednesday, in anticipation of the Federal Reserve policy meeting.
Many expect that today’s “Fed Day” announcement will see the Central Bank give firm signals on Tapering, as it looks to scale down on its bond-buying programme.
Although markets also expect interest rates to remain unchanged, many will be looking for forward guidance, and potential shifts in the Fed's stance of no hikes until 2023.
This comes as inflation rates in the United States are growing to multi-year highs, with these expected to reach close to 4% before the end of the year.
As of writing, EURUSD hit an intraday high of 1.1744, with the S&P 500 trading 1.21% higher.
DAX 30 rises despite German GDP forecast dropping
In Europe, Germany’s DAX 30 was trading higher, despite forecasts showing that GDP growth could be less than initially expected.
Data released by the Ifo institute, showed a reduction to its 2021 forecast for Europe’s largest economy, moving growth projection from 3.3% - 2.5%.
The adjustment comes as Germany’s recovery was dented by the rapid spread of the Delta variant, which led to tighter restrictions on travel, as well as the reopening of businesses.
Despite this, the report also showed that 2022 growth could compensate for this year’s shortfall, with its GDP projections rising from 4.3% - 5.1%.
The DAX 30 closed 1.03% higher on the news.
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