US Dollar falls on FOMC Statement

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On April 28, the Federal Reserve (Fed) issued FOMC Statement. As the result, the US Dollar lost 61 pips against the European Common Currency.

The Fed voted to keep the Federal Funds Rate unchanged at <0.25%. Also, the US policymakers are now expecting the inflation rate to increase noticeably above 2%.

Quoting the reports key points:"The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.

In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage‑backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals."

Full Official Release

FOMC Statement

In the immediate aftermath after the statement, the EUR/USD currency pair gained 38 pips. 

Initial Reaction

 
Larger scale situation

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Actual Topics

Wed, 05 May 2021 10:31:58 GMT

RBA policy remains unchanged

On May 4, the Reserve Bank of Australia made a rate statement. The event caused a minor move upwards, as the bank essentially revealed that it would not change its monetary policy. Quoting the statement's key points: "The global economy is continuing to recover from the pandemic and the outlook is for strong growth this year and next. The recovery remains

Tue, 27 Apr 2021 09:33:22 GMT

BoJ expects weak inflation

On April 27, the Bank of Japan released its rate statement. However, it did not cause any significant moves. The USD/JPY currency pair lost only 4 pips on the 10M time-frame chart. Afterwards, the pair continued to appreciate. According to the report, no considerable changes in monetary policy were made. The Japanese policymakers decided to keep the Policy Rate unchanged.

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