EUR/USD shudders after Fed dot plot shifts away from rate cuts, Fiber falls from 1.0850
Source Fxstreet
- 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...
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Gold price (XAU/USD) loses ground after registering gains in the previous day, trading around $4,050 per troy ounce during the Asian hours on Tuesday.
Oil prices remain depressed on Tuesday, as hopes of a new round of peace talks between the US and Iran boosted hopes of a de-escalation of the Middle East conflict.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – gains strong positive traction during the Asian session on Wednesday, snapping a three-day losing streak to an over two-week low touched the previous day.
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