- The Federal Reserve keeps rates unchanged as expected.
- The US dollar initially reacts higher and then falls.
The EUR/USD It fell to 1.2065 after the Federal Reserve issued its statement and then rallied above the 1.2100 area, reaching new two-day highs at 1.2104. The central bank of the United States offered no big surprises and the dollar appreciated only for a few minutes. Now the focus is on Jerome Powell.
The Fed shows no big signs
Unsurprisingly, the Fed kept its monetary policy unchanged. In the statement, the Fed mentioned that the economy and employment have strengthened. The US dollar rose after the release amid surging US yields, but then prices fell below pre-Fed levels. The 10-year yield spiked to 1.66% and then fell back to 1.64%. Now market participants await President Powell’s press conference.
After the initial run, the US dollar fell across the board, as was the case before the FOMC statement. US stocks remain in negative territory.
From a technical perspective, the EUR / USD is back again. A consistent breakout above 1.2100 is needed to clear the way to further profit. On the other hand, immediate support is seen at the daily low at 1.2055 and below at 1.2035. Volatility is expected to remain elevated during Powell’s press conference.
Technical levels
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