On Wednesday investors were looking forward to the outcome of the Fed meeting. It was clear that the rate would not change. As always, the main interest was in comments.
Fed signaled that the cost of borrowing will remain unchanged for now, with moderate economic growth and low unemployment expected to continue until this year’s presidential election. There are no expectations of a rate cut now.
The Bitcoin chart of the day
The regulator’s press release notes that the labor market remains strong and economic activity is growing at a moderate tempo. In recent months, jobs have been growing steadily on average and unemployment rates have remained low. Although household spending is increasing at a high rate, investment in fixed assets and exports remain weak. On a 12-month basis, core inflation falls below 2%.
The euro/dollar pair has frozen at the most important level 1.10. Yesterday afternoon there was even a symbolic removal of stops behind the round level. The situation is similar to the movement of the pound/dollar, when the stops were removed slightly above 1.35 and the dollar/yen, with the removal of the stops above the level of 110.
A solid consolidation for 2 days below 1.10 will indicate a move into a new range of 1.05-1.10. There are no strong fundamental reasons that affect the situation now. Therefore, the movements are chaotic, allowing traders to make money on rebounds.
The main hero for the third consecutive day is Bitcoin. A couple of days ago, we advised you to pay close attention to him. On Wednesday night, the first cryptocurrency showed a sharp increase, securing itself near the mark of $ 9400. The closest target of $10,000 is now very close.
What awaits us today?
09.55 Germany’s unemployment rate for December.
13.00 Bank of England decision on interest rate
13.00 Planned volume of asset purchases by the Bank of England
14.30 Annual data on GDP in the USA for the 4th quarter
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