The Euro is looking strong. Overview for 06.11.2020

EURUSD reached its two-week highs amid political uncertainty in the USA.

On Friday afternoon, the major currency pair remains confident, while the COVID-19 is spreading faster than expected and the USA is counting the votes. The current quote for the instrument is 1.1834.

During the November meeting, the US Federal Reserve left its monetary policy intact with the benchmark rate being at 0-0.25%. The rate decision was made unanimously.

According to the regulator’s comments, the country’s economy continues recovering but the problem is that the business activity is lower than it was before the pandemic. The recovery procedure directly depends on the development of the coronavirus situation because the pandemic and its consequences pose risks to the economic outlook.

At the moment, US inflation is contained by the weak demand and low prices for energies. The solution to this problem requires time. 

The regulator is planning to keep its interest rates low for leading indexation and continue buying bonds in the current volumes. The Fed has all the necessary monetary tools require for supporting the economy.

Nothing new was said: it goes without saying that as long as the pandemic is calling the shots, the global economies won’t change for the better due to a lot of huge risks. Apart from that, before taking some steps, the regulator obviously wants to see how the economy will be supported by Congress.