EUR/USD (current price: 1.1277)
The most traded currency cross was less volatile than expected following the FED statement, as the decision was roughly in line with expectations. The pair mostly traded under the influence of the better investor sentiment towards risk assets. Traders calmed down regarding the Brexit vote following the panicky trading on Tuesday, as stocks rebounded around the globe. The Eurozone Trade Balance was much better than expected, as the relatively weak Euro continues to help exports.
Our assessment: The pair rebounded after Tuesday’s sharp decline as it tracked the movement of the Pound, with the FED decision having muted effect on the Euro. The cross expected to remain volatile with a bearish bias until next week.
