EUR/USD: US FOMC Statement and Federal Funds Rate

The European Common Currency appreciated against the US Dollar, following the US FOMC Statement and Federal Funds Rate data release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate gained 19 pips or 0.17% right after the release. The Euro continued trading at the 1.1250 level against the Greenback.

Federal Reserve released the FOMC Statement, where the US policymakers provided in-depth insights into the economic and financial conditions that influenced their vote on maintaining the Federal Funds Rate unchanged. Note, that FOMC Economic Projections were released at the same time.

The Fed suggested that it would cut the interest rate in 2020. The median target for the federal funds rate remains 2.4% for 2019. Note, that the Federal Reserve has not cut the rate since the financial crisis. However, recent employment data set and inflation data releases have led analysts to forecast cut rates in the future.