Fed Holds Rates Steady, But Dovish Stance Sends Euro Higher Against US Dollar
- Fed held interest rates steady at 5.25%-5.5% as expected
- Markets interpreted statement as dovish, sent EUR/USD towards 1.0900
- Fed forecasts higher long-term rates, but markets expect easing in 2024
- Inflation still a concern though easing; labor market complicates outlook
- EUR/USD reacted higher as markets shrugged off Fed's growth projections