The EUR/USD pair saw an initial uptick but later dipped after the Federal Reserve's announcements.
The major currency pair is feeling the pressure on Thursday. The current EUR/USD exchange rate stands at 1.0632.
The US Federal Reserve has chosen to keep the interest rate steady during its September meeting, maintaining it within the targeted range of 5.25-5.50% annually.
In the Fed's statements, it was emphasized that this decision was unanimous, while hinting at the possibility of a potential rate hike before the year's end.
This aligns with the market's expectations, suggesting a potential increase in borrowing costs in the November meeting. The Fed made it clear that they intend to sustain the heightened rate for an extended duration.
Jerome Powell, the Chair of the Federal Reserve, expressed that the economy is anticipated to undergo a "soft landing". While not the central scenario, it's regarded as a primary objective.
Overall, Powell adopted a cautious and somewhat enigmatic stance, reflecting a degree of uncertainty. Initially, the US dollar dipped, but swiftly recovered, maintaining its strong position.