EUR/USD tumbles below 1.1750 as Fed rises rates and signals more hikes

USD gains momentum: EUR/USD erases daily gains, eyes daily lows.
Fed rises key rate to 1.75-2.00% range as expected, median forecast signal two more rate hikes for 2018.

Matías Salord FXStreet

The EUR/USD pair dropped from 1.1785 to 1.1742 after the release of the FOMC statement and the updated economic projections. The pair moved lower amid a rally of the greenback in the market. The US Dollar Index erased losses and rose back above 93.50.

EUR/USD was hovering around 1.1750, looking weak after events at the Fed. The euro erased daily gains in a few seconds and the pair was testing levels under 1.1750.

The Federal Reserve rose the Fed Funds rate by 25bp as expected. The updated projections of the FOMC staff showed the median forecast signaling two more rate hikes for the year. Those projections lifted the US dollar across the board. Now market participants await Jerome Powell’s press conference.

EUR/USD Technical levels

To the upside, resistance levels might be located at 1.1810 (Jun 12 high), 1.1840 (Jun 7 high) and 1.1870. On the flip side, support could be seen at 1.1755, 1.1725/30 (Jun 8 & 13 low) and 1.1705.

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.