- The Federal Reserve raises rates by 75 basis points.
- Dollar rises across the board, DXY hits new cycle highs.
- US Treasury yields rise, 10-year yield back above 3.40%.
The EUR/USD it fell to 1.0353 after the Federal Reserve decision. The US central bank raised interest rates and boosted the dollar. The pair is approaching the five-year low reached in May at the 1.0350 area. A further decline would expose the euro to the lowest level since 2002.
EUR/USD remains under pressure with strong support around 1.0350 and resistance at 1.0400.
After their two-day meeting, the Federal Reserve raised rates by 75 basis points, the biggest hike since 1994. In the statement, it mentioned that more interest rate hikes are coming and that the risk of recession increases.
The US dollar gained momentum across the board following the release of the FOMC statement. DXY hit new multi-year highs above 105.70. US stocks trimmed gains and hit new lows, though still remained in positive territory for the day.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
