How EUR/USD Reacts to the Fed Interest Rate Decision: Real Historical Data

How does the Fed interest rate decision affect the US dollar?

A rate hike or hawkish surprise typically strengthens the US dollar, since higher rates attract foreign capital seeking better yields. A rate cut or dovish surprise typically weakens the dollar, since lower rates reduce its yield appeal.

What happens to EUR/USD during the Fed's press conference?

The initial reaction to the rate statement often reverses during the Fed Chair's press conference 30 minutes later, as markets parse the tone of the Q&A. EUR/USD has historically produced its largest moves during the press conference rather than the statement itself.

How many pips does EUR/USD move on a Fed rate decision?

Based on the last 0 releases tracked on this page, EUR/USD moved an average of 0 pips within 60 minutes of the decision, though the move can be significantly larger around meetings with updated economic projections (the 'dot plot').

Should I trade through the FOMC decision on a funded account?

Many prop firms restrict trading around high-impact news releases, and the FOMC decision is one of the most volatile scheduled events of the year. Reducing position size or stepping aside through the statement and press conference is the safer approach on a challenge with drawdown limits.