The euro rose on Wednesday after the U.S. Federal Reserve left its benchmark interest rates unchanged. Adhering to market expectations, the Fed’s Open Market Committee voted essentially to maintain the status quo that has prevailed since the U.S. central bank first went to zero rates in late-2008.
FOMC members deemed economic activity “expanding moderately” with various sectors seeing some activity. The language, though, was tempered and the various indicators the Fed uses to tip its hand on policy showed little movement.
“I think the Fed is still on the path to raise rates this year,” said Marc Chandler, chief currency strategist at Brown Brothers Harriman, adding that, “in the dot plots, they are still looking for two rate hikes this year.”