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EUR/USD JITTERS AFTER FED RATE HOLD, FOMC PRESS CONFERENCE IN VIEW

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  • EUR/USD tilted toward the downside after a cautious Fed statement.
  • All eyes on Fed Chair Powell’s upcoming press conference.
  • Fed language cooled rate cut bets in September, but only slightly.

EUR/USD is churning chart paper near 1.0800 after the Federal Reserve (Fed) struck a notably measured tone regarding interest rates on Wednesday. Shifts in Monetary Policy Report language were much less confident on rate cut expectations than many market participants had been hoping for, with cautious tones about inflation and upbeat employment expectations miring odds of a quarter-point trim in September.

Breaking: Fed leaves interest rate unchanged at 5.25%-5.5% as forecast

Still, markets are pricing in 100% odds of a rate cut when the Federal Open Market Committee (FOMC) convenes in September, but added emphasis on key US data in the weeks ahead will spark more volatility as investors hope, counterintuitively, for a continued softening in headline US economic data to keep the Fed on the rails to a rate cut on September 18.


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