On Thursday, the main currency pair is falling a little bit; the market has already responded to the Fed’s decisions.
The EUR/USD pair is moving very slowly on Thursday afternoon. The market is recovering after yesterday’s rally and analyzing all possible information and news. The current quote for the instrument is 1.0726.
Today’s high at 1.0745 is unlikely to become a foothold for the EUR/USD pair. The USA Fed’s decisions turned out to be expected and predictable, so the market just closed some long USD positions opened earlier. It’s not that the Euro recovered quickly, it’s just most of the USD predictions came true. A couple of days more and the dust will settle completely.
So, the Fed increased the rate from 0.75% to 1.0%, just as expected. In the comments, Janet Yellen, the Chair of the Federal Reserve, sad that the rate would be increased twice later this year up to 1.4% by the end of 2017. In two and a half years, the rate has to be 3%, and rightly so. Probably, these were the most honest and clear comments from the Fed on the regulator’s plans. The clearer, the more perspectives for long-term investors.
The statistics from the Eurozone published today was rather neutral. The Final CPI in February added 2.0% y/y, just as expected. The Final Core Inflation Rate last month was 0.9% y/y. All this had no intrigue at all, because the prices in the region are doing fine due to the QE long-term effect, the ECB already mentioned it in the past.
This evening, the USA is going to publish a lot statistical reports, and if there are good readings among them, the USD may regain some of the lost yesterday.
RoboForex Analytical Department