EUR/USD Tumbles to Seven-Week Low as Fed Hikes Rates

The EUR/USD pair continues to trade at a seven-week low, hovering around 1.1459 on Thursday.

This decline is largely attributed to the Federal Reserve's decision to raise interest rates for the first time in three years, with a 25 basis point increase taking the federal funds target range to 3.75-4.00%.

Fed Chair Kevin Warsh emphasized that inflation remains too high, citing data from last week that showed core inflation accelerated more sharply than expected in August.

The market is now focused on the prospect of further rate increases, with Donald Trump's repeated calls for interest rates to be cut rapidly to 1% or lower seemingly having little impact on market expectations.