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EUR/USD Volatile Following FOMC Decision

June 11, 2020 by

EUR/USD demonstrated significant volatility today after yesterday’s monetary policy announcement from the Federal Open Market Committee. The currency pair was moving up and down over the trading session, and currently, it has bounced from the session lows to trade near the opening level. While the FOMC announcement was sufficiently dovish to drive the US dollar lower, risk aversion caused by a range of factors, including the increase of coronavirus cases in the United States after businesses started to reopen, was fueling the appeal of the greenback as a safe haven. As for today’s macroeconomic reports in the United States, there were just a couple of them, and they both were better than forecasts.

PPI increased by 0.4% in May, exceeding the consensus forecast of a 0.1% increase. The index slumped by 1.3% the month before. (Event A on the chart.)

Initial jobless claims fell to 1,542k last week, seasonally adjusted, from the previous week’s revised level of 1,897k (1,877k before the revision). The actual value was slightly below the median forecast of 1,550k. (Event A on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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