The main currency pair got stabilized after the Fed’s decisions and a volatile yesterday’s evening.
The EUR/USD pair back to consolidating after yesterday’s fluctuations. The current quote for the instrument is 1.1208.
During its June meeting, the USA Fed increased the key interest rate up to the target range, which is between 1.0% and 1.5%. Among the comments about improvement of economic conditions and positive market situation, the regulator announced the start of the process of decreasing the volume of assets on its balance.
The Chairwoman of the Federal Reserve, Janet Yellen, emphasized that the time had come to sell the treasuries and securities accumulated on the regulator’s balance, which had been bought within the framework of the QE program. The total volume is $4.2T. First of all, the Fed is planning to sell those with expiring dates of maturity. When it comes to treasuries, at first they will sell $6B each month, and then, in a year - $30B for the period of three months. For securities, the monthly limit will be $4B each month, and then, in a year, about $20B each quarter.
Investors were pretty calm in their response to these decisions. The only thing that changed the situation was 10- and 30-year bond yields.
The volatility in the EUR/USD pair didn’t last long and the instrument got stabilized by the morning. Right now, it may start consolidating in the range between 1.1180 and 1.1250.
RoboForex Analytical Department