- US Dollar drops modestly after FOMC statement.
- As expected, Fed left interest rate unchanged and repeated almost the same statement from the previous meeting.
- EUR/USD remains in negative territory for the day, off lows.
The EUR/USD pair rose from moved to the upside after the Federal Reserve released its statement. The pair peaked at 1.1675 up from 1.1660. It was hovering around 1.1670, steady, in negative territory and 20 pips above daily lows.
As expected, the Fed left interest rate unchanged at 1.75-2.00%. In the statement, among the few changes, upgraded household spending from “has picked up” to has “grown strongly”. The central bank sees strong economic growth.
Attention now turns to the White House that will make an announcement at 19:30 GMT on Chinese tariffs. According to Dow Jones reports, US President Trump will announce a 25% tariffs on China, up from 10%.
EUR/USD Levels to watch
To the upside, resistance levels might be located at 1.1675, 1.1700 (Aug 1 high) and 1.1725 (downtrend line). On the flip side, support could be seen at 1.1645, 1.1610 and 1.1575.
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