The US Dollar strengthened significantly after the Federal Reserve’s hawkish tone during its latest policy meeting, pushing the EUR/USD pair lower. While the Fed implemented a rate cut as expected, officials emphasized that further easing might not be on the horizon, signaling a cautious outlook. This divergence from market expectations of sustained cuts bolstered the greenback’s appeal, dampening sentiment around the euro.
Source – FXStreet
Market participants reacted swiftly to the Fed’s message, with the EUR/USD dipping to multi-week lows. Traders now anticipate slower policy easing in the US, contrasting with Europe’s economic challenges. Analysts suggest that the pair could face further downside risks as the US Dollar retains its strength amid broader risk-off sentiment.
