EURUSD had time to respond to the Fed’s decisions and comments, but investors were ready.
All decisions and comments after the US Federal Reserve September meeting were quickly taken into account by market players. The current quote for the instrument is 1.1040.
So, the Fed cut the rate by 25 basis points, down to 1.71-2.00%, just as expected. In the comments, the Fed Chairman Jerome Powell said that, first of all, the current decision didn’t mean any changes in the regulator’s monetary policy, and secondly, the Fed didn’t “kowtow” to the White House. The rate was cut in order to boost economic growth and nothing else. Well, it seems like a fitting reply to Donald Trump.
By the way, Trump was very dissatisfied with the Fed’s decision, because he didn’t see any prospects or the larger picture outlook.
This time, the American regulator revised its forecasts on the GDP from 2.1% to 2.2% earlier, which the inflation is expected to remain the same at 1.5%. The next meeting is scheduled for the end of October, but the Fed is highly unlikely to make any decisions until December.
Later in the afternoon, the USA is going to publish a lot of reports. The one worth paying attention to is the Existing Home Sales for August, which is expected to drop from 5.42M in July to 5.39M. It’s not a good signal, but let’s wait for the numbers first and then draw conclusions.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.