- EUR/USD approached 1.0900 after the Fed left interest rates unchanged.
- The Fed dot chart still sees 75 basis points in 2024.
- The Fed expects rates to remain higher through the end of 2026.
The EUR/USD rose after the latest decision by the Federal Reserve (Fed), which kept rates at 5.5%, as the markets had expected. Investor expectations point to further easing in 2024, even though the Federal Open Market Committee (FOMC) believes growth through 2024 and 2025 will be higher than initially expected. The FOMC dot plot of interest rate expectations also recorded an increase on the long end of the curve, with rates at the end of 2026 now expected to be around 3.1%, up from 2.9% previously.
The Fed now expects a rise in long-term rates through December, from 2.5% to 2.6%, but markets have failed to factor in the Fed's growth expectations and have put downward pressure on the US dollar (USD ), which has caused a rise in the Euro (EUR). The EUR/USD pair surpassed the 1.0890 level following the market's previous reaction to the Fed's rate request. Investors will now prepare for Fed Chairman Jerome Powell's press conference scheduled for 18:30 GMT .
EUR/USD 5-minute chart
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.