EUR/USD remains bid on Fed-day

EUR/USD extends the advance for the fifth consecutive session on Wednesday and remains well bid ahead of the key FOMC event due later in the European evening. On this, the Federal Reserve is widely expected to hike the Fed Funds Target Range (FFTR) by 25 bps to 4.75%-5.00%.

Investors’ attention, in the meantime, is seen shifting to the updated dots plot along with the press conference by Chief Powell, where a potential impasse in the Fed’s tightening stance should take centre stage.

Earlier in the session, Chair Lagarde was once again on the wires and reiterated the absence of a trade-off between price and financial stability. She also renewed the bank’s pledge to bring down inflation at the time when she acknowledged that underlying inflation dynamics remain firm.

In the domestic calendar, the Current Account surplus in the broader Euroland widened to €17B in January (from €13B).