EUR/USD surged closer to 1.0400 during the European session on Thursday as the US Dollar (USD) strength took a breather after Wednesday's sharp rally.
The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, held gains near a fresh two-year high above 108.00.
The greenback drew significant bids after the Federal Reserve (Fed) cut its key lending rate by 25 basis points (bps) to 4.25%-4.50% on Wednesday, as expected, but signaled fewer rate cuts for next year.
In the latest dot chart, the Fed revised its projection for the number of interest rate cuts in 2025 to two from the four expected at its September monetary policy meeting. In a press conference, Fed Chair Jerome Powell pointed to uncertainty over inflation, easing downside risks to employment and strong growth in the second half of the year as factors forcing officials to be cautious about cutting rates.
"I also pointed out that we are getting close to the neutral interest rate, which is another reason to be cautious about where it goes next," Powell added.
Meanwhile, the Fed has also revised its forecast for the core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred measure of inflation, to 2.5% for 2025, up from the previous estimate of 2.2% in its latest economic projections.
Source: FXStreet
Both the STOXX 50 and STOXX 600 hovered around the flatline on Friday, as investors adopted a cautious stance ahead of further developments in trade talks between US President Trump and Chinese Presid...
European equity markets are set to open cautiously on Friday (17/1) as investors prepare for the inauguration of Donald Trump as US President on January 20, amid concerns over potential tariffs that c...
Federal Reserve Chairman Jerome Powell, in a letter on Thursday, rebutted criticism leveled at the central bank by a top White House official regarding the $2.5 billion renovation project. "We take seriously our responsibility to be good stewards...
The US dollar (USD) weakened on Friday (July 18th), retreating from a three-week high as momentum waned. However, the greenback remained supported by strong US economic data released this week, which has reduced the likelihood of an immediate...
Oil prices edged higher on Friday (July 18th), heading for a slight weekly loss, as investors weighed new EU sanctions against Russia. Brent crude futures rose 50 cents, or 0.72%, to $70.02 a barrel at 09:12 GMT, while U.S. West Texas Intermediate...
U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an...
European stocks erased early gains and closed mostly lower on Tuesday as markets continued to assess how potential tariffs from the US may hurt...
The U.S. central bank will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of...
President Donald Trump's renewed calls for Federal Reserve Chair Jerome Powell's resignation have prompted investors to protect portfolios against...