EUR/USD drops toward multi-year lows as Fed hikes by 75bps
- Federal Reserve hikes rates by 75bps.
- US dollar rises across the board, DXY at fresh cycle highs.
- US yields move higher, 10-year back above 3.40%.
The EUR/USD dropped to 1.0353 after the decision of the Federal Reserve. The US central bank raised interest rates and boosted the greenback. The pair is approaching the five-year low it reached in May at the 1.0350 area. A larger decline would see the lowest prices for the euro since 2002.
The EUR/USD remains under pressure, seeing strong support ahead around 1.0350 and resistance at 1.0400.
After its two-day meeting, the Federal Reserve raised rates by 75 basis points, the largest hike since 1994. In the statement it mentioned that more interest rates are coming and increasing risk of a recession. Attention now turns to Jerome Powell's press conference.
The US dollar gained momentum across the board after the release of the FOMC statement. The DXY hit fresh multi-year highs above 105.70. US stocks trimmed gains and hits fresh lows, although still holding in positive territory for the day.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
