The major currency pair is falling after the June meeting of the American regulator.
EURUSD is retreating on Thursday morning influenced by several factors. The current quote for the instrument is 1.1336.
One thing is that the Euro got very high, its three-month highs, and the correction looks rather logical. Another thing is that the US Federal Reserve provided enough signals that it was going to continue the stimulus programs as long as it would have to, and it supported the USD. At the same time, revision of forecasts for many macroeconomic indicators downwards didn’t surprise market players.
The key interest rate remained unchanged at 0-0.25%, just as expected. The Fed Chairman Jerome Powell was rather reserved in his estimations and comments. However, even his quite gloomy forecasts on the country’s GDP and unemployment couldn’t ruin investors’ mood.
So, the regulator is expecting the GDP to lose 6.5% this year after the first estimate of +2.0%. the unemployment rate may be as much as 9.3% at the end of 2020 against the initial reading of 3.5%. it’s not good news but market players saw what happened in April and May and it was much worse. It’s good when you can make a comparison – in this case, prospects are not as frightening as they could be.
In the comments, the regulator expressly indicated that it would continue following the course of its monetary policy. It means that the interest rate will remain low until 2022, while the country’s economy and businesses will still have comprehensive support.