EURUSD reached stability. Overview for 20.05.2021

20 мая 2021 - Fx4News

EURUSD plunged yesterday evening but successfully found support on Thursday. 

The major currency pair is recovering on Thursday afternoon after yesterday’s decline. The current quote for the instrument is 1.2187.

Before plummeting, the Euro updated its high at 1.2246. 

Last night, the US Federal Reserve System published the FOMC Meeting Minutes, which was widely expected by market players. The document says that the country’s economy is still pretty far from the regulator’s targets and the rate issues continue preventing the economic system from recovering. At the same time, the Fed admitted that the business activity significantly improved.

The document also says that any visible progress in the economic recovery will allow to start discussing the reduction of bond purchasing, but not earlier. It’s the opinion of several FOMC members. 

As for the labor market, the regulator is sure that the employment growth rates in some spheres are now lower than before. 

When it comes to inflation, the global forecast hasn’t changed. Inflation outside the USA increased due to several temporary factors, from oil price growth to weaker effects from selective deflation. The core inflation remains weak and insignificant. 

Investors got exactly what they wanted – the American regulator was pretty clear in its further stance on stimulation and support to the economy. There is no point in looking for any other hints or indications. The “greenback” was fine with that managed to recover.