Forex
US Dollar Surges as Fed Turns Hawkish, EUR/USD Pair Sees Sharpest Decline
The US dollar regained momentum after the Federal Reserve turned hawkish, catching speculators off guard and causing the EUR/USD pair to decline its sharpest in three weeks.
Kevin Warsh's hawkish rhetoric following the September FOMC meeting removed an obstacle to buying the US dollar while creating a barrier to selling it.
The Fed's decision to raise interest rates, despite Donald Trump's objections, restored confidence not only in the central bank but also in US assets.
Other major central banks, including the ECB and Bank of Japan, are tightening monetary policy to combat inflation, which could further support the dollar.