Fed causes USD volatility

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On July 28, the US Federal Reserve made a rate statement and issues its Federal Open Market Committee Statement. In general, the Fed kept its interest rate unchanged and the bank continues its quantitative easing program.

Quoting the statement: "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.

Last December, the Committee indicated that it would 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 its maximum employment and price stability goals. Since then, the economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings."

Monetary Policy Statement

Federal Reserve issues FOMC statement

Immediately after the release, the EUR/USD plummeted 41 base points. Namely, the rate dropped from 1.1814 to 1.1773. However, afterwards, a recovery started. In less than two hours after the drop, the currency exchange rate had recovered by 77 points and reached the resistance of the 1.1850 mark.

Initial Reaction

Larger scale situation

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Actual Topics

Thu, 29 Jul 2021 11:03:08 GMT

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The week will stand out with the Reserve Bank of Australia Rate Statement, the Bank of England Monetary Policy Report and the monthly US and Canadian data releases. Events will start on Monday, as on that day at 14:00 GMT, the US ISM Manufacturing PMI would be published. On Tuesday, at 04:30 GMT, the Reserve Bank of Australia will make a rate

Mon, 26 Jul 2021 13:10:39 GMT

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On July 22, the European Central Bank published a monetary policy Statement. In general, the bank announced that the Eurozone is still in a crisis and still needs stimulus. Quoting the statement: "In its recent strategy review, the Governing Council agreed a symmetric inflation target of two per cent over the medium term. The key ECB interest rates have been close

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