The euro/USD ran to a six-week high on Thursday as the market reaction to the Federal Reserve’s 25 basis point rate hike continued. The greenback was weaker across the board and fell against several G7 currencies, including the British pound.
EUR/USD
The world’s most-traded currency pair rose for a sixth straight session on Thursday as markets continued to digest yesterday’s gains.
The Federal Reserve opted to raise rates by 0.25% despite recent uncertainty in the banking sector.
After the announcement, Fed Chairman Jerome Powell said, “FOMC participants are not considering a rate cut this year, that is not our fundamental expectation.”
Overall, it appears that lower inflation remains a priority for the Fed, and furthermore, if banks face liquidity problems, the US Treasury is looking for ways to guarantee customer deposits.
EUR/USD rose to an intraday high of $1.0929 in today’s session, the highest rate since February 3.
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