EUR/USD Flat as Traders Digest Fed Rate Hike Decision
The EUR/USD pair trades flat around 1.1465 during European trading hours on Thursday, as traders assess the US Federal Reserve's interest rate hike decision.
The Fed raised rates by a quarter-percentage point at its September meeting and flagged more hikes in the coming months, with officials validating a hawkish path and projecting one more increase later this year.
Fed Chair Kevin Warsh joined the unanimous decision to lift interest rates, while officials emphasized their focus on price stability and acknowledged the split between market expectations and policy projections.
Carol Kong, currency strategist at Commonwealth Bank of Australia, noted that Warsh's tone was more hawkish than expected, which contributed to the dollar's strength.
However, TD Securities cautions that the USD rally is likely temporary, as the Fed's median dot plot forecast does not out-hawk market pricing, and growth in other regions remains resilient.