EURUSD slammed by hawkish Fed.
EURUSD falling strongly today under the powerful bearish U.S. dollar sentiment as the markets are reacting to the latest comments from the Fed in which is projected faster timetable for interest rate rises – sending bond yields and the dollar sharply higher. Officials moved their first projected rate increases to 2023 from 2024. The Fed also signalled it would now be considering whether to taper its $120 billion-a-month asset purchase programme meeting by meeting, and downgraded the risk from the pandemic given progress with vaccinations. The more hawkish changes to FOMC participants rate path expectations came despite little change in the 2023 unemployment rate and inflation forecasts. This suggests less tolerance for an inflation overshoot than previously thought – signalling further dollar gains ahead and losses for EURUSD.
Next support to watch – 1.1939
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