EURUSD reached another bottom, the lowest in the last 20 years.
The major currency pair continues to retreat on Thursday. The current quote for the instrument is 0.9866.
The USD is in high demand from investors who are trying to escape risks.
So, the most important monetary event of the month is over – the US FOMC completed its September meeting and raised the benchmark interest rate by 75 basis points, up to 3.00-3.25%. It’s the third straight meeting with the same rate hike.
According to the comments, the regulator will continue to tighten its monetary policy. In addition to that, the Fed revised its GDP expectations for 2022 and 2023. In 2022, the indicator might add 0.2% against the previous estimate of 1.7%. The next year, it is expected to gain 1.2% instead of the 1.7% forecast before.
Inflation, in its turn, might show 5.4% and 2.8% in 2022 and 2023 respectively.
When delivering his speech, the Fed’s Chair Jerome Powell confirmed that the regulator’s inflation target remained at 2% and that it would use all available tools and mechanisms to reach it.
This information was mostly negative for capital markets, but it was no sensational.
According to CME, there is a 59% possibility that the rate might rise to 4.25-4.50% by the end of 2022.