Euro falls sharply after hawkish Fed hold under Warsh
The Euro sold off heavily after Kevin Warsh’s first meeting as Fed Chair delivered a hawkish surprise, despite leaving the headline rate unchanged. The dot plot projections shifted in a more restrictive direction, triggering a sharp USD rally.
EURUSD
The Euro was routed during the first Federal Reserve meeting chaired by Kevin Warsh. While the headline interest rate was left unchanged as widely expected, the accompanying dot plot projections took a markedly hawkish turn.
Revised rate path forecasts implied fewer cuts and a more restrictive stance for longer, catching markets off guard. The dollar surged across the board, with EURUSD breaking key support levels.
- Fed held rates steady as telegraphed
- Dot plot shifted hawkishly
- Euro fell to session lows
- USD index rallied sharply
Source: FXStreet Forex News