US Dollar Price Forecast: Fed Rate Path in Focus as EUR and GBP Stay Under Pressure

US Dollar Price Forecast: Fed Rate Path in Focus as EUR and GBP Stay Under Pressure

Source: EODHD - https://finance.yahoo.com/markets/currencies/articles/us-dollar-price-forecast-fed-083232199.html
Published: Sep 16, 2026 4:32 AM

Dollar Index Outlook: Fed Rate Hike Looms as EUR and GBP Face Diverging Policy Paths The USD faces its first interest-rate decision post-COVID on Wednesday with the market pricing in an expected 25 basis point hike from the Fed. Futures were pricing in a 93% chance of a rate hike heading into the announcement with investors more concerned about the economic outlook in the US than before. The limited impact of the anticipated rate hike on the USD is dependent on Chair Warsh framework for this policy decision. A one-off hike to regain tri bump inflation could limit any shock to the market and the greenback, while the start of a more aggressive tightening cycle would increase rate hike expectat...

Market context: This update is relevant to EUR traders, with EURUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.