investingLive European FX news wrap: Final countdown to the last Fed decision of 2025 | investingLive

It’s been a very boring session with no data or notable news releases. In the markets, it’s been the same with rangebound price action almost across the board. But that shouldn’t be surprising because we are counting the hours to the last FOMC decision of the year.

Before the Fed, we will have the Bank of Canada delivering its rate decision where the central bank is expected to keep interest rates unchanged but not validating the rate hike bets just yet.

Given the incoming Fed’s decision, the BoC event is unlikely to bring too much volatility unless the central bank clearly pushes back against market pricing or opens the door for rate hikes already at this meeting.

The Fed, on the other hand, is widely expected to deliver a “hawkish” 25 bps cut bringing the FFR to 3-50-3.75%. The overall tone is expected to be more hawkish with clear signal of a pause and the bar for further cuts being higher.

We will also get new Summary of Economic Projections (SEP) and the Dot Plot at this meeting, although little changes are expected. The focus will be on potential surprises and especially on the Press Conference where Fed Chair Powell will have to strike a balance between sounding too hawkish or too dovish.

Wish you all a successful trading day. Don’t bet without conviction and keep your risk management in check. Will catch you tomorrow!