The main currency pair continues growing after the US Federal Reserve said that the it was going to increase the key rate three times this year.
On Thursday, EURUSD continues its growth that started yesterday. The current quote for the instrument is 1.2358.
So, the two-day meeting of the US Federal Reserve was over. The results are pretty conservative and expected: the key rate was increased by 0.25% and right now it is 1.50-1.75%. In the comments, the regulator estimated the economy and the labor market of the country as positive and said that it was hoping to revise the rate two more times this year.
This is what made EURUSD “bulls” advance: when the rate increases, the national currency should get more expensive, at least on paper. However, this theory didn’t work out for the USD, because investors were expecting the rate to be revised four times this year instead of three. Jerome Powell, the new Governor of the FOMC, hinted at four times several weeks ago, when he reported to the US Congress and said that the country’s labor market and the inflating were quite strong.
As a result, one may assume that Powell himself hasn’t decided yet on his monetary policy, “hawkish” or “dovish”, because some of his comments, for example those that relate to salary growth, are quite aggressive, but others are pretty conservative. So far, the regulator’s monetary policy remains unchanged, but no one know what might happen later.