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EUR/USD lifts as Fed keeps Interest rates on hold

The US Federal Reserve policy voting committee; the FOMC have just done what the markets expected and left all their Fed funds rate on hold, at between 5.25% and 5.50%. However, they have lifted the 2025 and 2026 dot plot plan has been increased. That said the 2024 dot plot has remained as it was. Just ahead of this the dollar was edging lower and had been since the middle of the afternoon. The reaction to this outcome has seen it fall back a bit further. Perhaps the markets had expected a more hawkish outcome here and that is not exactly what we have. That said this decision changes little and it remains to be seen how far the dollar will weaken on this news. The EUR/USD has lifted above 1.0885 on this news as the US stock markets take a hike higher too. 

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