EURUSD has been falling for the second trading session in a row; investors are focused on the news.
The major currency pair is still correcting on Thursday. the current quote for the instrument is 1.0690.
Yesterday, market players were totally focused on the FOMC Meeting Minutes. The document said that it would be necessary to continue raising the benchmark interest rate. However, it was no surprise for investors.
The document also stated that 50-point rate hikes, like it was in May, would be required in the future, probably after the regulator’s next meeting. The Fed’s major task right now is to help inflation to reach stability. The CPI is pretty high and the consequences can already be seen in the key macroeconomic indicators. Starting 1 June, the Fed is expected to cut its own balance, which is currently equal to $9 trillion. First of all, the regulator will stop reinvesting the funds received from the bonds that are no longer in circulation.
The Fed’s next is scheduled for 14-15 June.
Average market expectations imply 2.5-2.75% by the end of 2022. In general, it’s a pretty big number for the US but right now they are considered neutral.
As a result, the tone of the document turned out to be rather moderate.
Later today, investors should pay attention to the second estimate of the US Q1 GDP, which is expected to show -1.3% q/q against the previous estimate of -1.4% q/q. Let’s wait for the details of this report – they should be very important.