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Euro strengthens after Fed keeps rates steady, EUR/USD tops 1.1420

The Fed’s decision was split 9 to 3, with three policymakers backing a 25 basis point hike, while it cited solid growth despite Middle East uncertainty.

Reported · Written up by our desk · Major Pairs

The euro rose after the Federal Reserve kept interest rates unchanged in a 9 to 3 vote, supporting gains in EUR/USD. Three dissenters backed a 25 basis point rate increase.

EUR/USD traded above 1.1420 and was up 0.3% amid volatile conditions. The Fed said economic activity continues to grow solidly despite high uncertainty tied to the Middle East conflict.

In its statement, the Fed pointed to strong productivity growth and capital investment, steady job gains, and little change in the unemployment rate. The central bank also reiterated its commitment to maintaining price stability.

The dissenters named by the outlet included Beth Hammack of the Cleveland Fed, Neel Kashkari of the Minneapolis Fed, and Lorie Logan of the Dallas Fed, who supported the 25 basis point hike.

Latest closeEUR/USD 1.139 ▼0.1%

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