The euro was inching higher even before the rate decision. The traders were betting on a dovish stance from the Fed.
The U.S. central bank raised the rate by 0.25% this afternoon as expected. Taking the hint from the inflation data this morning, the euro was trading up at around $1.1760 against the U.S. dollar right before the rate decision. The traders were somewhat comfortable betting on a dovish statement from the Fed after the US inflation rose at a somewhat disappointing 2.2% pace over the year.
Not everyone on the board agreed on the rate hike. 2 members dissented. Job market’s growth no longer seen “strengthening further,” which sent the U.S. dollar lower against all of its major rivals after the Fed’s rate decision.
The excitement does not end here. Tomorrow, the ECB and the BOE will make the monetary policy announcements as well. If the ECB’s statement is hawkish, it will send the euro higher for sure.
A buy position was opened from my MT4 EA after the rate decision. Currently, it’s still open.
The strategy can be found here.
The latest result can be found here.