EUR/USD Breaks Below 1.15 Level Following Fed Rate Hike

Key Facts

1The EUR/USD exchange rate fell below the 1.15 level to trade near 1.1462 following the Federal Reserve's interest rate hike.

2The Federal Reserve raised interest rates by a quarter-point on Wednesday.

3RBC expects two more Fed hikes, while ING forecasts a EUR/USD recovery to 1.160 by December.

In a move reflecting the ongoing monetary tightening in the United States, the EUR/USD exchange rate fell to break the psychological support level of 1.15. According to reports, the pair reached 1.1462 following the Federal Reserve's decision on Wednesday to raise interest rates by a quarter-point. This price action was primarily triggered by the strengthening of the US Dollar following the Fed's latest policy move.

Major financial institutions remain divided on the pair's future trajectory; RBC expects two additional interest rate hikes from the Fed, which could maintain downward pressure on the Euro. Conversely, ING forecasts a potential recovery for the pair to 1.160 by December. These developments follow a period of active policy adjustments, as per market data showing the European Central Bank raised its rate to 2.65% on September 10, 2026.

Traders should monitor liquidity levels around current zones, noting that authoritative price data is unavailable for the snapshot on September 17, 2026. Looking at the economic calendar, recent US inflation data released on September 11 showed a yearly rate of 3.4%, providing the fundamental backdrop for the Fed's recent tightening. Market participants will now look toward upcoming central bank communications for further directional catalysts.