During the Asian session, the euro holds its positions against the dollar trading near yesterday’s high, after the announcement of the US Federal Reserve on monetary policy. Yesterday, the US dollar initially rose after the FOMC announcement but for quick handed its positions, as the Fed’s statement, issued after a two-day meeting, led investors to revise their expectations of rising interest rates before the end of the year.
The US Federal Reserve, following the meeting, raised its assessment of the situation in the economy, saying that the short-term risks to the outlook have decreased. The leaders of the central bank left the door open for a rate hike later this year, possibly as early as September. Nine out of ten members of the committe voted to keep the key interest rate range unchanged at 0.25% -0.5%, but more optimistic assess the situation on the labor market and in other sectors of the economy.
Some investors expect the Fed clearer signals regarding the rate hikes in the coming months. CME Group recently pointed out that investors see a 24% probability of a rate hike in September compared to 27% probability earlier on Wednesday.
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