Yesterday the main currency pair flew up by more than 400 points up when Janet Yellen accused the USD of rising too fast.
Last night was the finest hour for the single European currency. After a fairly ordinary meeting of the US Federal Reserve, during which the interest rate was maintained in the target range of 0-0.25% per annum, a traditional press conference of the regulator was held. And then the euro/dollar "jumped" up.
This time all the standard accents were shifted. Janet Yellen said that the whole thing is due to an expensive dollar. Exporters suffer without getting the appropriate volume of income. Respectively a slightly smaller volume of funds will go into the budget. Because of the too rapid growth of the USD the Fed will be forced to delay the start time of the interest rate increase. The markets were not ready for this: all bets were calculated on the basis of a rate increase in mid-2015. Now, judging by the mood of the regulator, the start of tightening is carried over to at least September.
The Fed also revised the GDP forecast for the current year. Now, it is assumed that the economy this year will expand by 2.3-2.7% against the previous expectations of growth of 2.6-3.0%. Updated rate expectations now suggest a range of 0.50-0.75% by the end of the year, while earlier economists expected a range of 1.00-1.25%. Expectations for inflation were also significantly lowered.
Against this background, during the remainder of the Wednesday session, the euro/dollar added more than 4 figures. Current bids are around the 1.0756 mark, while investors adjust their positions - still yesterday's reaction was excessive.
It is thought that for now the main currency pair will remain in the corridor of 1.05-1.08.
RoboForex Analytical Department