The Fed raised interest rates for the first time in nine years!

On Wednesday, the Federal Reserve raised interest rates for the first time in nine years, the rate has been raised from 0.25% to 0.50%…No FOMC member says no to this decision.

In its statement, the Fed said there has been a considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective. Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent. The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.

Here’s the full statement >>

Market Impact:

This development should advance the U.S dollar in the medium term outlook. The EURUSD ended the day at 1.0910, above the key support 1.0890. Note that the pair remains neutral, trapped within 1.0890/1.0980 range, a failure to hold below 1.0890 levels on a daily closing basis could mean a return to the 1.0980 levels If seen that would be a great opportunity to sell on resistance levels.

Despite the pair is neutral, stability below the 1.0980 levels will keep it under pressure and it may expose the 1.0890 levels….If seen, support comes at the 1.0830/1.0762 levels…

On the upside, a clear break above the 1.0980 levels will increase the risk towards the 1.1095 levels…

GBPUSD: The pair almost reached critical support level at the 1.4950 levels, a rejection may be seen, but overall outlook remains down as long as the pair trades below the 1.5140 levels…Conclusion: sell on the rebound!

USDJPY: The pair is challenging minor resistance level at the 122.20 levels, a break will build a strong pressure on the 123.03 levels…support comes at the 121.00 levels…