Euro Jumps Over $1.17 as Fed’s Rate Decision Reshuffles Forex Markets — TradingView News

Dollar traders weren’t exactly sure how to go about the latest Fed move. Should we buy up? Or sell off?

📈 Euro Pops as Dollar Wobbles

• The EURUSD jumped above $1.17 after the Fed delivered its third straight rate cut, sending dollar traders into instant confusion mode: “Is this dovish? Hawkish? Hawkishly dovish?”
• The move pushed the pair to a three-week high near $1.1707 as markets digested a rare 9–3 Fed vote split – two officials wanted no cut, one wanted a bigger one.
• With the dollar wobbling on mixed policy signals, the euro seized the moment, extending its steady December climb.

🏦 Fed Cuts But Signals Slowdown

• The Fed trimmed rates to 3.5%–3.75%, the lowest in three years, aiming to cushion hiring softness while avoiding over-stimulating inflation.
• Powell reiterated the “wait and see” stance, suggesting the committee may pause from here unless the labor market deteriorates significantly.
• Officials hinted job growth may come out slightly negative since April once data overcounting is corrected – a subtle but meaningful shift for FX markets.

🎮 What It Means for Dollar?

• A cautious Fed with unclear forward guidance is a recipe for dollar volatility, and Thursday’s spike showed traders leaning toward dollar weakness.
• If US labor data deteriorates further, the euro could keep pressing upward as markets price in additional easing risk.
• But if inflation re-accelerates and the Fed pivots back to hawkish messaging, this rally may hit a ceiling quickly. The euro holds the momentum while dollar traders are still figuring out which chapter of the script they’re in.