Breaking: EUR/USD extends slide to fresh 19-month lows near 1.1180

EUR/USD remains under constant bearish pressure on Thursday and trades at its lowest level since June 2020 near 1.1180.

The broad-based dollar strength on the Fed's hawkish policy outlook is causing the pair to extend its slide ahead of high-tier macroeconomic data releases from the US. 

Following the Fed's decision to leave the policy settings unchanged, FOMC Chairman Jerome Powell signalled that they will start planning the balance sheet reduction following the first rate hike, which is widely expected to happen in March. Powell further noted that they have "quite a bit of room" to raise rates without hurting the labour market.

According to the CME Group's FedWatch Tool, markets are pricing 66% chance of the Fed hiking its policy rate 50 basis points by May.

The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, climbed to its highest level in more than 18 months near 97.00.