According to Golden Finance, the Federal Open Market Committee (FOMC) will announce its interest rate decision later today.

Maybank analysts stated in a foreign exchange research and strategy report that market expectations for a 50 basis point rate cut by the Fed have stabilized in the 60%-70% range. However, analysts suggest that the FOMC may want to avoid sending the wrong signals to the market by cutting rates significantly, partly because this could trigger panic.

Analysts added that market participants will be closely watching Fed Chair Powell's press conference for nuances in forward guidance on future rate cuts. (Golden Ten)