Markets decided to believe in the USD. Overview for 01.08.2019

The major currency pair is getting significantly weaker after the US Federal Reserve July meeting. The rate cut isn’t the start of a new “softening” cycle. 

EURUSD continues falling after the US Federal Reserve July meeting and the comments from Jerome Powell. The current quote for the instrument is 1.1043.

So, during the July meeting, the FOMC cut its rate by 25 basis points down to 2.0-2.25%, just as expected. However, investors were too impressed by the comments from Jerome Powell that followed later. The Chairman said that the current rate value wasn’t the start of a new consequent cycle of loosening the regulator’s monetary policy. 

Powell said that the FOMC saw no reasons to cut the rate several consecutive times because it wasn’t really necessary and there were no signals from the country’s economy. These words provided great support to the USD. 

It appears that the FOMC decided to take a step back, influenced by the White House of course, but was in no hurry to take more steps if take any at all. Market players gained insight: the regulator is still sticking to the macroeconomic statistics, which are pretty solid.