Euro Levels Out Below $1.30 Ahead Of Fed Results

The euro remained steady below $1.30 on Wednesday morning as the U.S. Federal Reserve prepared to wrap up its two-day policy meeting.

The common currency looked likely to face further downward pressure as the Fed releases more clues about the timing of its rate hike, but it traded steadily at $1.2954 at 10:00 GMT.

On Tuesday, the euro nearly pushed above the $1.30 mark as the dollar lost ground due to speculation about the Fed meeting.

Investors have been anticipating that the bank will suggest an earlier than expected rate hike at this month’s meeting for quite some time; however, that speculation waned on Tuesday, and many began placing their bets on a more dovish tone from the U.S. central bank.

Reuters reported that investors will be focusing on the Fed’s language rather than economic data, with the phrase “considerable period” a hot-button for markets.

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The bank previously promised to maintain low interest rates for a “considerable period” once its bond buying program has finished, so all attention will be on whether that phrase will be removed from the bank’s statement.

The Fed has been cautious about providing markets with a timeline for its rate hike at previous meetings, saying that the bank will wait until economic data proves that the U.S. economy can stand firmly on its own before considering a rate hike.

Fed Chair Janet Yellen has expressed some concern about the labor market, but many believe that the bank will move forward with a rate cut if labor data suggests that the market has improved faster than forecast.