European session review: USD remains under pressure ahead of the announcement of the Fed meeting outcome

USD weakened against other major currencies in the European session on Wednesday as market participants await the announcement of the Fed meeting outcome later today. 

The U.S. Federal Reserve will announce the results of its two-day policy meeting today at 18:00 GMT, and its Chairman Jerome Powell will hold a news conference at 18:30 GMT. 

The U.S. central bank is not expected to make any major policy changes, with its benchmark rate near zero and the asset purchasing programs continuing.

However, some investors believe that the Fed could decide to implement yield curve control (YCC) to guide the yields of the 10-year U.S. government bonds, which climbed to their highest level in nearly three months on hopes of faster economic recovery, lower. 

Another point of interest will be economic forecasts and "dot plots" for interest rate projections from the Fed's policymakers. 

The Fed is set to provide its first forecast for the U.S. economy since the COVID-19 pandemic pushed the country into recession. Markets will be curious to see when the central bankers expect to see single-digit employment and a return to pre-pandemic output. Its "dot plots" are expected to reaffirm the Fed's commitment to keeping interest rates low for the next few years.