EUR/USD reacts lower after the Fed's decision to keep rates unchanged in January

• EUR/USD falls near 1.0815 after the Fed announcement.
• The US Federal Reserve maintains interest rates at 5.5% for the fourth consecutive meeting.
• The focus turns to Jerome Powell's statement.

The EUR/USD has staged a rebound of more than 40 pips after the Fed announcement. It first rose to 1.0858, but immediately after fell to 1.0816. At the time of writing, the pair is trading above 1.0832, losing 0.12% daily.

The Fed does not make any move while awaiting Jerome Powell's statement

The United States Federal Reserve (Fed) has decided not to vary its interest rates at the first monetary policy meeting of 2024 held today, January 31. Rates remain at 5.5% for the fourth consecutive meeting, as expected, after they were last raised last July.

The Federal Open Market Committee (FOMC) does not expect it to be appropriate to lower the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.

Investors are now awaiting the appearance of Jerome Powell, chairman of the Fed, who could offer clues about the start date of the rate cuts, which many already expect for the second half of the year. The FedWatch tool puts the chances of a cut at the March meeting at 45.8%, raising it to 50.3% at the May meeting.

Technical Levels