ForexNewsNow – The euro was fairly stable against the dollar on Wednesday despite Greece’s announcement of “satisfactory progress” with the troika of creditors, and a few hours before the end of the highly expected FOMC meeting in the US.
The EUR/USD pair was trading at 1.3711 as of around 03:05 P.M., GMT. The heavily traded currency pair is up 0.073% on the day and has reached a session high of 1.3723 with a low of 1.3629 thus far.
The US Federal Reserve’s Open Market Committee is to decide today at 18:15 GMT – after two days of meetings – whether or not it will take active measures to boost the American economy.
Analysts expect the Fed to lower its long-term interest rates without changing interest rates in the short term.
On Tuesday, the International Monetary Fund (IMF) lowered its growth forecast for 2011 and 2012 for both the euro zone and the United States, urging the countries’ authorities to take measures to reduce public debt and help usher in an economic recovery.
Today, the IMF also proposed a new measure to try to stop the contagion of the Euro debt crisis by extending the European Financial Stability Fund’s (EFSF) mandate to cover the most fragile banks.
Lastly, according to minutes from the latest monetary policy meeting published on Wednesday, the Bank of England will open the door to new asset purchases if the economic recovery remains dull in the UK.