EURUSD rose in the evening of December 11, on the decision of the Fed to leave the rate unchanged.
The text of the Fed's statement was generally neutral, both the strengths of the economy, the labor market, and its weaknesses which is the low investment and low inflation were noted.
Below is the full text of the Fed statement:
Having kept the base interest rate in the target range of 1.50% -1.75%, the US Federal Open Market Committee commented on its decision and the current situation in the country.
The Fed notes a moderate increase in economic activity and strong labor market positions due to steady average job growth in recent months and a low unemployment rate. It notes that even though family expenses are growing significantly, the growth dynamics of investment in business structures and export performance still look weak.
The Fed continues to assess long-term inflation expectations as stable. At the same time, calculated on the basis of a 12-month period, total inflation and core inflation, which do not take into account energy and food prices, are below 2%. Compensatory impact on inflation from the markets continues to be carried out to a small extent.
The Fed seeks to promote maximum employment and price stability, in accordance with its authority. It has decided to keep the target interest rate range for federal funds at 1.50% -1.75% as well as believes that the current principles of monetary policy are appropriate to maintain sustainable growth in the economic activity, strengthen the labor market and ensure inflation near the symmetric 2% target level indicated by the Fed itself. It will continue to closely monitor incoming information and its economic consequences, including global events and moderate inflationary pressures, while further designing the appropriate path for the target interest rate range for federal funds.
In determining the timing and scale of future regulation of the target range of interest rates for federal funds, the Fed will be guided by both the achieved and expected economic progress in comparison with its goals of maximum employment and symmetric inflation at 2%. This approach will be based on a wide range of information, including the parameters of labor market conditions, indicators of inflationary pressures and inflation expectations, financial and international events.
The current monetary policy framework was unanimously adopted by 10 members of the US Federal Open Market Commission.
EURUSD:
We hold euro purchases from 1.1035 and we wait for the ECB at 12:45 Universal time and at 13:30 Universal time, and as well as the election result in Britain.
