The GBP/USD hit a new yearly high of 1.3286 during the North American session after the Fed surprised the markets with a 50 bps rate cut.
The US Federal Reserve (Fed) will announce monetary policy decisions following the September policy meeting and release the revised Summary of Economic Projections (SEP), the so-called dot plot, on Wednesday.
There are no major data releases in the eurozone today, and EUR/USD should trade in tight ranges until the FOMC announcement this evening, ECB to cut rates if Fed delivers 50bp today “The transmission channels from the Fed cut to EUR/USD are the USD short-term rate impact first, and the equity reaction second.