Market Stands Still Ahead of FOMC Meeting

During the European session, the British pound and the euro remain under pressure from the US dollar ahead of the meeting of the Federal Open Market Committee. At the same time, many negative factors suppress the British currency. The GBP/USD is still under the influence of the lack of progress in the negotiations on the Brexit issue. Today, the GBP/USD is trading around 1.3335. Demand for the pound also decreased after weak statistics on the UK labor market. The number of people claiming for unemployment benefits in the United Kingdom rose by 5,900 in November.

Meanwhile, the euro area also released important data. Eurozone industrial production grew by 0.2% in October, defying market expectations of a 0.2% decrease. The German inflation increased by 0.3% in November and 1.8% in a year. However, as analysts note, the released data does not attract the attention of the traders. There is no doubt that the Fed will raise the funds rate today. This will contribute to a strong growth of the US dollar, which has already begun in the morning. As soon as the news about the rate hike is released, the euro will start to decline to 1.1650, while the pound is expected to fall to 1.3225.

Thursday will be an important day for the European traders as both the ECB and the Bank of England will make a decision on the key interest rates. Experts say that the next trading week will be less active ahead of the Christmas holidays.

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