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EUR/USD seesawed within the 1.1650-1.1635 range on Wednesday as the Federal Reserve (Fed) cut rates by 25 basis points, as expected, yet there were two dissenters at the meeting. At the time of writing, the pair trades volatile, as traders await the Fed Chair Jerome Powell's press conference.

Dollar swings as traders await Powell’s tone for clues on future easing path

The majority of the Federal Open Market Committee voted to reduce the fed funds rate to 3.75%-4%. The two dissenters were Fed Governor Stephen Miran, who cast a dovish note by voting for a 50 bps rate cut, while Kansas City Fed President Jeffrey Schmid opted to keep rates unchanged.

In its statement, the Federal Reserve said “that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.”

They added, “The Committee decided to conclude the reduction of its aggregate securities holdings on December 1,” signaling an end to its balance sheet runoff as part of its ongoing policy recalibration.

EUR/USD reaction to the Fed’s decision

(Click on image to enlarge)

EUR/USD remains at around familiar levels, near 1.1650, with traders eyeing Powell. On the upside, the first key resistance would be the day’s high at 1.1665, followed by 1.1700. Conversely, on the downside, the first support would be the day’s low of 1.1618, followed by 1.1600.

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