On Thursday morning, the major currency pair is trading close to its three weeks highs.
EURUSD is keeping its positive momentum on Thursday. The current quote for the instrument is 1.1505.
So, the January meeting of the US Federal Reserve really was world-shaking. The interest rate remained unchanged, 2.25-2.50%, and the American currency moved a little bit upwards in response to this news. However, market players absolutely weren’t ready to hear what followed after.
In the comments, the regulator said it was going to be very patient when increasing the rate. Investors took this message as the regulator’s intention to cut a break in tightening its monetary policy and be more careful with outlooks for the future. This is where the USD got under pressure, which continues up to now.
The Federal Reserve says this break is a compulsory measure to be taken due to a lot of financial and economic factors along with muted inflation pressures. However, some previous statements changed: first of all, the regulator is no longer talking about balanced economic risks; secondly, no more words about further rate hikes at a slower pace. These two factors along with others really mean that the regulator’s monetary policy might be put on hold.
As for comments from the Federal Reserve Chairman Jerome Powell, his speech was mostly dedicated to economic estimations. According to Powell, the country’s economy will grow slower than it was predicted earlier, while financial conditions are getting worse than before. Needless to say that these comments didn’t make the USD any happier.