Economic News

Federal Reserve issues FOMC statement

Federal Reserve issues FOMC statement

Last week passed without any major movement. The main event was FOMC meeting of the US Federal Reserve at which it was unanimously decided to raise the key rate by 75 basis points to 4.00%. The highest level since 2008. Such a move was quite expected. Therefore, the subsequent press conference of the regulator’s management was of greater interest to market participants. Fed Chairman Jerome Powell said at the meeting that although inflation must be reduced drastically, monetary policy parameters can be changed as needed.

The DXY Dollar Index moved up, hitting 113.00. The US currency strengthened against all G10 currencies, except for the Japanese yen. Then a reversal followed, and before the release of the data on unemployment in the US on Friday, November 04, it fell to 112.35, and EUR/USD consolidated around 0.9800.

The immediate support for EUR/USD is at 0.9865-0.9885, followed by 0.9825, 0.9765, 0.9700 and finally the Sep 28 low at 0.9535. The next target of the bears in 0.9500. For bulls, the first priority will be to break the 1.0000 barrier. Then they will meet resistance at the levels of 1.0100, 1.0250, 1.030 and 1.0370.

OF the notable events of the upcoming week, first of all, we should note the data on retail sales in the Eurozone, which will be published on Tuesday November 08. There will be data on the consumer market and the US labor market on Thursday, November 10. And on Friday, November 11, we will find out the value of the German CPI and the US University of Michigan Consumer Confidence Index.