Euro Hits the Lowest Since Early 2003 In The Wake of FED’s Decision
In the aftermath of the event that the U.S. Federal Reserve (FED) announced its first interest-rate increase of 2016 on Wednesday, the greenback extended its strong rally versus all of its peers including the euro on Thursday.
The pair EURUSD hit fell more than 1.3% to an intraday nadir of $1.03984 – the lowest level for more than a decade as the Fed had signaled a more aggressive outlook for interest rate policy in coming years. After hiking its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent, the central bank stated that it expected the median fed-funds rate to be 1.4% by the end of 2017, soaring to 2.1% at the end of 2018 and 2.9% in 2019.
This means that there will be three quarter-percentage-point interest-rate increases over each of the next three years. This pace is faster than what was forecast in September, when there were only two rate increases next year projected.
Sell Stop at 1.04100, Take profit at 1.03700, Stop loss at 1.04300