EUR/USD jumps above 1.1200 after FED decision

By FXStreet EUR/USD jumped from below 1.1100 and climbed reaching levels on top fo 1.1200 boosted by a decline of the US dollar across the board. Greenback weakened after the US central bank decided to leave rates unchanged and also after the FOMC staff projections now show two rate hikes during 2016 instead of four. The new FOMC staff projections are more in line with market expectations.

The pair reached 1.1211 and is trading near the top slightly below last week highs (1.1217). According to analysts from Brown Brothers Harriman, the euro held support we identified near the breakout from the ECB meeting in the 1.1040-60 area. “It has now moved to almost 1.1190. We have suggested that provided the breakout holds, the euro can move back toward 1.1300.”

Before the FOCM decision, the pair was trading at 1.1080 and then jumped more than a hundred pips and it was consolidating strong gains during Janet Yellen press conference. A daily close around current levels would be the strongest in a month.

FED pulls back

James Knightley, from ING, noted that the particularity of today’s meeting was the hawkishness tempered by the Fed’s median projections showing a reduction in projections for rate …read more

Source:: FX Street