The USD is calm after the FOMC meeting. Overview for 20.12.2018
On Thursday morning, the major currency pair reached stability after quite volatile trading session the day before.
EURUSD found support and reached stability after active trading session on Wednesday. The current quote for the instrument is 1.1383. Yesterday, the major currency pair reached the highest levels over the past two week at 1.1439.
So, the December meeting of the US regulator was finally over yesterday. The benchmark rate added 0.25% and now it’s 2.25-2.50%, meaning that the FOMC did wat it had promised earlier and increased the rate four times this year.
It seems like the regulator decided to stand against the White House and continue following its monetary policy. The only point the FOMC agreed to stretch for was reduction of rate hikes in 2019. The regulator announced two rate hikes in 2019 instead of three planned earlier.
This decision along with further plans relating to the monetary policy made capital markets and the USD go down. Investors are seriously worrying about the US GDP slowdown next year.
Now, one should probably expect the US President Donald Trump to start criticizing the Federal Reserve, thus making “bears” even stronger.
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