EUR/USD reacted as expected to the monetary decisions.
The major currency pair remains robust on Thursday, with the current EUR/USD quote standing at 1.1110.
As anticipated, the US Federal Reserve raised the interest rate by 25 basis points during its meeting yesterday, bringing it to 5.5% per annum.
The market sentiment stayed subdued as the Fed's comments indicated no expectations of an interest rate cut for the rest of the year. The current economic environment has made it challenging for the regulator to provide extensive forecasts, making future rate decisions data-dependent, particularly for the September meeting.
The Fed remains concerned about elevated core inflation and expects the process of reducing consumer prices to take considerable time, maintaining the target at the 2% level.
While the Fed's accompanying statement offered no indications of an impending recession, it reiterated its readiness to tighten monetary policy further if the need arises, closely monitoring economic developments.
However, despite the informative aspects of the meeting, investors did not have many definitive signals. The lack of clarity leaves uncertainty, except for the Fed's cautious assessment of the inflationary landscape and its preparedness to act promptly if necessary.
Next on the agenda is the meeting of the European Central Bank (ECB) scheduled for today, which may also bring significant volatility. Nevertheless, the ECB's decisions are generally apparent: an interest rate increase is expected due to the uncontrollable inflationary pressures.
Furthermore, today's market attention is also drawn to the release of the US second-quarter GDP report.