Fed Hikes to 4% as Dollar Strengthens

The US Federal Reserve raised interest rates to 4% just six days after the European Central Bank (ECB) did the same. The reaction was swift, but short-lived, as the pair ticked up on the release and then reversed, falling 31 pips before the five-minute bar was out.

This represented three-quarters of the range it had built all session. The day's high was just above 1.1550, made in the European morning, but is now 42 pips away. Meanwhile, the low of the day was around 1.1500, roughly 20 pips below where it sat going into 18:00 GMT.

The five-minute momentum gauge read near 33, which is mid-range, as the drop came faster than the indicator measures.