EUR/USD rises toward 1.1300 as Fed leaves rates unchanged

EUR/USD climbed to 1.1296 immediately after the FOMC announce its decision to leave rates unchanged as expected. Greenback lost strength across the board as Fed’s officials lowered projections for interest rates.

The pair pulled back afterward but it was holding a bullish tone, trading near 1.1300. A break above would put the price at the strongest level in six days. Now attention turns to Janet Yellen’s press conference that will start at 18:30 GMT.

Unanimous decision

The decision to keep rates unchanged was unanimous. According to the central bank, “the pace of improvement in the labor market has slowed while growth in economic activity appears to have picked up”.

US bond yields dropped after the decision while stocks initially rose but then pulled back approaching the levels it had before the decision. The Dow Jones was up 0.35% while the 10-yr US bond yield dropped to 1.586%.