EUR/USD jumps above 1.0800 to fresh six-week highs as Fed raises rates as expected
|- FOMC raises key rate by 25 bps as expected, despite recent turmoil.
- US Dollar tumbles after FOMC statement, attention turns to Chair Powell.
- EUR/USD breaks 1.0800 and climbs toward 1.0850.
The EUR/USD jumped from 1.0790 to 1.0845, following the decision of the Federal Reserve (Fed) to raise interest rates by 25 bps as expected. The US Dollar tumbled as US yields dropped sharply.
Fed moves as expected
The Federal Reserve (Fed) raised its key interest rate by 25 bps as expected to 4.75% -5.00%. The vote was unanimous. They dropped the forward guidance, mentioning that “some additional policy firming may be appropriate”, instead of “ongoing increases in the target range will be appropriate”. In a few minutes, Chair Powell's press conference will begin.
The US Dollar dropped sharply boosting the EUR/USD to the upside. Markets are looking at the decisions as a “dovish hike”. Wall Street indices printed fresh highs. The improvement in risk sentiment weighs on the US dollar.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.