EUR/USD drops as Fed signals no rush for interest rate cuts
EUR/USD trades lower to near the 10-day low of 1.0815 in Friday’s European session. The major currency pair faces selling pressure as the US Dollar (USD) strengthens after the Federal Reserve (Fed) expressed that interest rate cuts are not on the table in the current scenario. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to near 104.15.
On Wednesday, the Fed kept interest rates steady in the range of 4.25%-4.50% for the second time in a row, as expected. Fed Chair Jerome Powell said in the press conference that the central bank is not going to be in a “hurry” to move onto “interest rate cuts”. His comments supporting a restrictive monetary policy stance stemmed from “unusually elevated” uncertainty over the United States (US) economic outlook.
Source: FXStreet