EUR/USD hits fresh highs near 1.0900 after Fed’s decision, eyes turn to Powell

• Fed, as expected, keep rates unchanged; Powell press conference to start at 18:30 GMT.
• US dollar drops modestly across the board, DXY hits fresh lows.

The EUR/USD rose from 1.0860 to 1.0880, reaching a fresh daily high following the release of the FOMC statement. The greenback pulled back across the board but a few minutes later recovered from most of its losses. As of writing, the pair is trading at 1.0865/70, holding a bullish intraday tone but off highs.

The Fed kept its key rates at 0.00 – 0.25%. FOMC members voted unanimously. The interest rate will stay at the lower bound until the economy has weathered recent events and is on track to reach inflation and unemployment goals.

After the statement, the greenback turned lower, probably affected by the forward guidance on rates. Now market participants await Chair Powell press conference.

The US Dollar Index hit a fresh daily low at 99.54 but remained above Tuesday’s lows. Equity prices held on to gain, and gold kept hovering around $1700.

Technical levels