“Report”: EUR can be USD 1.2 until next meeting of Federal Reserve System - ANALYSIS

Baku. 4 February. REPORT.AZ/ The decision to keep the rates stable at 2.25-2.5% was made at the last meeting of the Federal Open Market Committee (FOMC) held on January 29-30.

Report’s analytical group believes that  that the Fed expressed its position to temporarily delay the dollar surge in the market.

Stable interest rates  were ensured at the time when Dow Jones exceeded the 25,000 points. Even US President Donald Trump drew attention to this issue through Twitter. This shows that the President is not concerned about the economic situation of the country and is pleased with keeping the interest rate stable.

At the press conference after the meeting, FED chairman Jerome Powell mainly spoke about Brexit and said that this issue sends contradictive signals to US economy: "Fed does not react to many processes in the financial markets, however, any continuous change affects our thinking style."

Fed’s decision had a certain impact on dollar’s position. For example, the US dollar has slightly dropped against EUR and USD/EUR rate neared 1.151. Along with EUR, currencies of other developing countries also strengthened. In this respect, Indonesian rupee, Chilean peso and Turkish lira are among the top three.

Report’s analytical group believes that dollar will keep going down. USD/EUR rate may be 1.2 until the next meeting of the Fed (March 19-20).