EUR/USD clinches highs near 1.1200 on Fed

EUR/USD remains volatile between 1.1130 and the vicinity of 1.1200 the figure after the Federal Reserve left its monetary stance on hold at today’s meeting.

EUR/USD now looks to Yellen’s presser

Spot remains within the recent range after the Fed left unchanged its rates at 0.25%-0.50%, broadly in line with market expectations.

The Committee has voted 7-3 in favour of keeping the status quo, with dissenters being E.Rosengren, E.George and L.Mester. The Fed has also pointed to one hike towards year-end. The Committee has reiterated that the case for higher rates has strengthened although more evidence is needed.

Members have also updated their projections (‘dot plot’) and they now see 2 rate hikes during 2017, down from 3 hikes in the previous statement.

EUR/USD levels to watch

The pair is now gaining 0.32% at 1.1187 facing the next hurdle at 1.1216 (high Sep.20) followed by 1.1283 (resistance line off 2016 high) and finally 1.1329 (high Sep.8). On the flip side, a breakdown of 1.1121 (low Aug.31) would target 1.1043 (low Aug.5) en route to 1.0950 (low Jul.25).