The main currency pair continues falling on Thursday morning. The US Federal Reserve intends to increase its benchmark rate 4 times this year.
EURUSD continues trading downwards after another meeting of the American regulator. The current quote for the instrument is 1.1640.
The major even of this week, the US Federal reserve meeting, was over yesterday. The key rate remained unchanged at 1.75%-2.00%, as expected. The last time the rate was revised was in June, that’s’ why no one expected it to change this time.
Nevertheless, the regulator did what everyone on the currency market expected it to – there would be four rate hikes in 2018 instead of three. The previous two were in March and June. Two more may happen in September and December (CME is 90% and 70% respectively).
In the comments, the regulator said that its monetary policy remained the same, the QE would continue to support the inflation and the labor market. The slow increase of the key rate would boost the economic activity,
So, the USD got some support, but couldn’t recover against the Euro very quickly. On one hand, investors are waiting for reports on the US labor market in July, which may be rather unexpected. On the other hand, now is an excellent time for the USD to rise, because other macroeconomic numbers that are published these days are quite neutral.
Orgin: RoboForex
