EUR/USD: FOMC Statement and Federal Funds Rate

The European Common Currency depreciated against the US Dollar, following the US FOMC Statement data release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate lost 29 pips or 0.26% right after the release. The Euro continued trading at the 1.1105 level against the Greenback.

The Federal Reserve released the Federal Funds Rate data, which came out in line with the expectations of 2.25%.

During the press conference the Fed Chairman Jerome Powell said a recent rate cut is not the start of a long series of rate cuts. He suggested that a global economic slowdown, the US trade tensions and a need to boost low inflation are the reasons why the US policymakers decided to lower the rate. Thus, the US Dollar appreciated against the Euro.