EUR/USD drops sharply to 1.1860 after FOMC meeting
|EUR/USD lost more than a hundred pips after the FOMC meeting. A stronger US dollar across the board pushed the pair to the downside.
After the 2-day meeting, the Federal Reserve left interest rates unchanged at 1.25%, as widely expected. The FOMC lowered inflation expectations but according to the updated projections, they still expect one more rate hike in 2017. The central bank will start to unwind the balance sheet in October.
Janet Yellen Speech - Fed Live Stream
FOMC statements: Comparison between July and September
FOMC's decisions regarding monetary policy implementation - Sep 20, 2017
EUR/USD consolidates losses
The pair tumble from levels on top of 1.2000 to 1.1860, reaching the lowest in six days. The rebound from the lows was short-lived so far and it was moving again toward daily lows amid Yellen’s press conference.
EUR/USD fell approaching September lows located around 1.1835. At the moment of writing was trading at 1.1875, having the worst day in months. A break under 1.1830/35 would damage further the technical outlook for the euro. A recovery back above 1.1920 would remove some momentum out of the US dollar.
The greenback remains supported by bonds. The US 10-year yield reached 2.281%, the highest since August 16.
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