EUR/USD holds steady around 1.1000 as Fed keeps rates unchanged
- Federal Reserve keeps rates unchanged as expected, Powell’s press conference starts at 19:30 GMT.
- US dollar holds to daily gains, DXY heads for the highest close since early December.
The EUR/USD pair kept hovering around 1.1000 after the released of the FOMC statement. The US dollar rose marginally across the board and US yields dropped modestly.
The Federal Reserve (Fed) kept its interest rate unchanged at 1.50 - 1.75% and rose the IOER rate to 1.6% from 1.55%, as expected. The decision had practically no impact across markets. Fed’s actions were fully discounted. The statement contained minor changes. Now they see household spending rising at a “moderate” pace instead of “strong”. Now attention turns to Chair Powell’s press conference.
As of writing, EUR/USD trades at 1.0999, around the same level of the last three hours, down more than 20 pips for the day. From a technical perspective, the pair continues to test a key support area at 1.1000 and also 1.0980. A break lower would increase the bearish pressure on the euro. On the upside, a recovery above 1.1010 could add momentum for a short-term recovery.