Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Are You Missing Out In the Bull Market?

Trade Now >
Time to Make Your Move?

za

SEARCH

  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search query too short. Please enter a full word or phrase.
  • Search

Keywords

Access Restricted

Your access to this website is restricted.

Our website and services are not available to, and are not intended for, individuals who are citizens or residents of the United States, or entities incorporated in or conducting business within the United States.

If this does not apply to you and you believe you have received this message in error, please contact us at [email protected] for further assistance.

If you fall into any of the above categories, please exit the site.

  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
  • tiktok
  • spotify

FOMC Decision: A Potential Dovish Shift and Its Impact on EUR/USD 

Vantage Updated Updated Fri, 2025 April 11 07:29

The upcoming Federal Open Market Committee (FOMC) decision could be a pivotal moment for financial markets, particularly for EUR/USD traders. With speculation mounting about the Federal Reserve’s stance on future rate cuts, a dovish shift relative to current market pricing may influence the US dollar against the Euro. 

FOMC Decision: A Potential Dovish Surprise? 

Over the past week, market expectations for Federal Reserve rate cuts have shifted considerably, with traders dialling back their bets on aggressive easing. However, if the FOMC signals a more dovish approach than what is currently priced in—such as acknowledging economic risks or hinting at rate cuts sooner than expected—the US dollar could weaken.  

While the Fed’s inflation forecasts may rise due to looming import tariffs, this could be counterbalanced by a downward revision in the 2025 GDP growth forecast and a potential increase in unemployment expectations. The Fed operates under a dual mandate—balancing full employment with price stability—which means it may lean towards a more dovish approach if adjustments are made to its rate guidance. 

Potential Market Impact 

  • A More Dovish Fed? If the Fed signals an easing bias, it could surprise markets and drive a knee-jerk weakening of the U.S. dollar. 
  • Labour Market Considerations – The Fed has historically prioritized protecting employment gains, reacting quickly to signs of weakness. Given the February jobs report showed only modest strength, this could add further downside risks for the dollar. 
  • Market Pricing & Expectations – With traders recently scaling back their bets on rate cuts, a dovish signal from the Fed could catch many off guard, increasing volatility. 

EUR/USD: A Major Beneficiary? 

Any deviation from the Fed’s previous stance will likely have a significant impact on the U.S. dollar’s performance, particularly against the euro. If the FOMC delivers a more dovish-than-expected message, the EUR/USD pair may experience upside momentum if the Fed surprises markets—a hypothetical scenario based on current sentiment, as traders adjust their positions. 

Technically, the EURUSD failed to break the initial resistance of November 2024 around the 1.09372 price level as traders weigh their prediction of the Fed rate cuts ahead of the meeting on Wednesday. After an impressive move to the upside that saw the pair gain close to 500pips, the price has now eased all gains made this as it challenges the minor support level around the price of 1.08345 price level which will play a very crucial role in the next move for the EURUSD.  

Currently, traders estimate a 70% probability of at least one Fed rate cut by June. However, if the Fed provides little indication of an imminent reduction, EUR/USD could see a stronger reversal from the 1.09372 resistance level, potentially driving the pair back toward the 1.07750 support level. 

Stay up-to-date with the latest market developments through Vantage’s educational resources. Benefit from competitive spreads, low fees and transparent pricing, and enjoy round-the-clock customer service as you explore the dynamic world of forex CFD trading. Sign up today!