EUR/USD shudders after Fed dot plot shifts away from rate cuts, Fiber falls from 1.0850

• EUR/USD pulls back from 1.0850 after Fed holds rates; rate cuts look less likely.
• Fed dot plot sees less likelihood of rate cuts in 2024.
• Fed's forward-looking rate expectations tick higher.

EUR/USD pivoted away from 1.0850 on Wednesday after the Federal Reserve (Fed) held rates as markets broadly expected, but a shift in the Fed's "dot plot" of interest rate expectations is warning that interest rates are likely to continue holding higher for longer

Fed leaves policy rate unchanged at 5.25%-5.5% as forecast

The Fed's interest rate outlook sees higher rates than previously expected, with the 1-year rate outlook rising to 4.1% from the previous 3.9%. The 2-year rate outlook held steady at 3.1%, and the long-term interest rate outlook has also risen to 2.8% from 2.6%.

Live Coverage: Fed dot plot cools Gold, stocks, buoys US Dollar

According to the Fed's dot plot, only a single rate cut in 2024 is looking more likely. 

more to come...