EUR/USD and GBP/USD Slide as Dollar Rallies on Fed's Hawkish Adjustment

The US dollar strengthened broadly against major counterparts following the Federal Reserve's hawkish policy adjustment, pressuring EUR/USD and GBP/USD lower. The Fed's revised dot plot signaled a more aggressive rate trajectory than markets had anticipated, boosting US Treasury yields and drawing capital flows into the greenback. EUR/USD came under sustained selling pressure as the policy divergence between the Fed and the European Central Bank widened, with the ECB maintaining a comparatively dovish stance. GBP/USD also declined, with sterling unable to hold ground despite the BoE keeping rates unchanged. EUR/GBP and EUR/CHF cross pairs reflected shifting relative valuations across European currencies. Technical indicators suggest USD momentum remains strong, with key support levels on EUR/USD being tested. Traders should watch for follow-through dollar buying in the near term, particularly if upcoming US economic data reinforces the Fed's hawkish posture. Resistance for the dollar index appears limited in the current environment.