Euro Struggles As Fed Moves In Opposite Direction From ECB

The euro plummeted on Wednesday after the Federal Reserve’s monthly policy meeting served as a reminder that the US central bank is moving in the polar opposite direction from the European Central Bank.

On Thursday, the common currency steadied at $1.2878 as investors anxiously awaited the results of Scotland’s referendum vote.

On Wednesday, the Federal Reserve maintained its cautiously optimistic tone, saying that the decision to raise interest rates will depend heavily on economic data and whether or not it indicates that the US economy is ready to stand on its own.

The bank said its quantitative easing package will end in October, but did not provide an exact timeline for an interest rate hike. The bank elected to keep its forward guidance consistent, saying that rates will remain low for a “considerable time."

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The Wall Street Journal reported that Fed Chair Janet Yellen was vague about the bank’s plans for a rate hike at her press conference following the meeting, but stressed the importance of using economic data to help determine the correct timing for the rate increase.

Moving forward, investors will be watching the UK as Scotland heads to the polls to decide whether or not the country should remain a part of the UK or have its own independence.

Recent polls have shown that independence supporters have lost some ground, but nearly 10 percent of the country’s population remained undecided. British Prime Minister David Cameron has warned that Scotland will no longer be allowed to use the pound if it becomes independent, something that many believe could be enough to persuade voters to vote the referendum down.