- EUR/USD bounced from 1.1335 to 1.1365 after the Fed held rates steady at 4.5%,
- Market tensions remain elevated, but investors noted a slight shift in Fed policy tone.
EUR/USD churned within intraday levels after the Federal Reserve (Fed) held interest rates at 4.5% on Wednesday. Markets had broadly forecast a flat stance from the Fed for its May rate call, but the key for investors will be how much the Fed shifts its stance toward future rate cuts.
According to the Fed’s rate announcement, policymakers have noted that, while US employment and economic activity remain firm overall, risks to both labor and output have risen, largely at the hands of policy uncertainty surrounding tariffs and US trade. The unease from Fed officials surrounding economic risks helped to pin market hopes for impending rate cuts on the high end, sending risk appetite counter-intuitively into the ceiling.
Read more Fed news here: Fed leaves policy rate unchanged as expected
More to come…
EUR/USD 5-minute chart
