EUR/USD is rallying as market smells the disinflationary process getting underway

• EUR/USD has rallied on the back of a less hawkish Fed Powell.
• The market is pricing in rate cuts, this is weighing in the greenback. 

EUR/USD has rallied as the market jumps on a dovish tilt at the Federal Reserve, despite inflation ''running very hot''. However, the Federal Reserve chairman is speaking to the press and he has put no timeline on a pivot, with more rate hikes in the pipeline before a pause ''to get the job done.''

At the time of writing, EUR/USD is taking in the upper quarter of the 1.09 area with printing a high of 1.0985 made so far. The Euro rallied from a low of 1.0852 on the day, completing its daily ATR and bulls keep moving in with eyes on the 1.1000 psychological mark. The Fed terminal rate has fallen to under 4.9% amid chair Powell's comments:

Watch live: Fed Powell's presser

Fed Press Conference: Chairman Jerome Powell speech live stream – February 1

Fed Powell's comments so far

Powell speech: Very difficult to manage the risk of doing too little on rates

Powell speech: Disinflationary process is in early stages

Powell speech: History cautions against prematurely loosening policy

Powell speech: Well-anchored longer-term inflation expectations not grounds for complacency

Powell speech: Will likely have to maintain restrictive stance for some time

EUR/USD H4 chart