EUR Trades Cautiously as Fed Hike Chances Soar to 92.5%

The Euro (EUR) is trading cautiously against the US Dollar (USD) ahead of the Federal Reserve's (Fed) monetary policy announcement at 18:00 GMT.

According to the CME FedWatch tool, there is a 92.5% chance that the Fed will hike interest rates by 25 basis points (bps) to 3.75%-4.00%, breaking its five-meeting hold streak and kicking off the monetary tightening cycle.

The market reaction would be influenced majorly by the monetary policy statement and Chairman Kevin Warsh's remarks on inflation and the economic outlook.