Markets Mixed Ahead of Fed Decision as USD Softens and Equities Diverge

Major indices and currencies showed mixed movements on Wednesday as markets awaited the Federal Reserve’s monetary policy announcement scheduled for 18:00 GMT. Despite a 30% chance of a rate hike being priced in, the Fed is widely expected to keep interest rates on hold, according to FX Street (ING, Michiel Tukker).

The Euro traded near 1.15 against the US Dollar, with ING’s Francesco Pesole noting that EUR/USD may have bottomed last week if geopolitical tensions ease and risk sentiment stabilizes. Meanwhile, GBP/USD edged slightly higher to around 1.3300 as the US Dollar weakened ahead of the Fed announcement, FX Street reported.

In equities, futures showed mixed signals during European trading hours: Dow Jones futures rose 0.11% to about 53,000, S&P 500 futures gained 0.16% near 7,480, while Nasdaq 100 futures slipped 0.17% to roughly 27,870. For Japanese investors, these movements highlight the cautious stance ahead of US monetary policy, which remains a key driver for FX and equity market volatility in Asia.