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EUR/USD Down After FOMC Claims

September 23, 2009 by

EUR/USD managed to reach its new high level since late September 2008 and then went down below the daily open level today. The FOMC decision played the major role in today’s decline of the euro against the U.S. dollar. Currently EUR/USD is trading near 1.4764 after reaching as high as 1.4842 earlier today.

U.S. Federal Reserve decided to leave the interest rate unchanged between 0% and 0.25% but slowing down the purchase of the mortgage securities and the agency debt. The statement from the Fed also included a claim that the economical output is expected to be very low for an “extended period”, while the changes in the monetary policy are expected to be made at the end of the first quarter of 2010.

Crude oil inventories increased for the first time in several weeks — by 2.8 million barrels during the week ending September 18. During the same time total motor gasoline inventories went up by 5.4 million barrels. Such a growth of the inventories have put a great pressure on the oil prices globally.

A minor market indicator was released this Monday — Leading Economic Indicators index increased by 0.6% in August, following 0.9% gain in July. The index was expected to rise by 0.7% in August.

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

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