Currency Markets React to Fed Rate Hike: Impact on EUR/USD, GBP/USD, USD/JPY

The US dollar slipped after the US Federal Reserve hiked interest rates as expected, with a neutral tone from Chairman Powell. The focus now shifts to the European Central Bank and Bank of Japan meetings. For EUR/USD, the pair holds above crucial support but needs to clear the hurdle at 1.1150 for a bullish outlook. GBP/USD rebounded from strong support and needs to overcome resistance at 1.2965 to eliminate downside risks. USD/JPY fell below immediate support, raising the odds of a false move higher, and is now testing vital support at 139.50-140.00.