29 Apr 2015
EUR/USD steadies around 1.1100 after FOMC statement
FXStreet (Córdoba) - EUR/USD backed away from daily highs and trimmed gains during the American afternoon as the Federal Reserve left the door open to a June rate hike.
The Fed decided to keep the target range for the federal funds unchanged at 0-0.25% and even though it acknowledged a slowdown in the economy, it was attributed to transitory factors. Even though the FOMC kept rate options open, many analysts think the Fed will wait at least until September in the light of recent data.
Today, US GDP preliminary estimate showed US economy grew by 0.2% in Q1, well below the 1.0% expected and the 2.2% rise accomplished the previous quarter.
The dollar reacted positively to Fed statement, dragging EUR/USD to the 1.1075 area, after having struck an 8-week high of 1.1187 before the release. The pair has managed to steady around the 1.11 mark and it was last trading at 1.1110, recording a 1.19% gain on Wednesday.
The Fed decided to keep the target range for the federal funds unchanged at 0-0.25% and even though it acknowledged a slowdown in the economy, it was attributed to transitory factors. Even though the FOMC kept rate options open, many analysts think the Fed will wait at least until September in the light of recent data.
Today, US GDP preliminary estimate showed US economy grew by 0.2% in Q1, well below the 1.0% expected and the 2.2% rise accomplished the previous quarter.
The dollar reacted positively to Fed statement, dragging EUR/USD to the 1.1075 area, after having struck an 8-week high of 1.1187 before the release. The pair has managed to steady around the 1.11 mark and it was last trading at 1.1110, recording a 1.19% gain on Wednesday.