The main currency pair is back to 1.18; today is the second consecutive trading session.
On Thursday morning, EURUSD is trading close to 1.18 – it significantly improved after the Federal Reserve meeting was over yesterday. The current quote for the instrument is 1.1800.
So, the June meeting of the US federal Reserve was over yesterday without any surprises. The benchmark rate was increased up to 2.00% (the range was moved from 1.50%-1.75% to 1.75%-2.00%). In the comments, the regulator said that the economy was doing fine and announced two more rate increases this year, thus bringing the total number to four. Plans for 2019 remain unchanged so far, three times, as was told earlier.
The Federal Reserve improved its expectations on the unemployment rate this year, now the target is 3.6%. In addition to that, the GDP Growth expectations were also increased, up to 2.8% y/y. The inflation target remained at 2%: according to the regulator, this reading is fine considering the current market conditions.
In the speech that followed, the Federal Reserve Chairman Jerome Powell said that the current inflation rate was okay, but noticed that there were a lot of thing to work on.
The European Central Bank will have its meeting today. The key rate issue is the last thing that investors are interested in. The major topic for discussion is whether the ECB is ready to close the QE program in September or says that the regulator may continue the program for as long as the Euro Area’s economy needs it. This may be the key factor for EURUSD movement this evening.