The Euro has updated its highs. Overview for 17.12.2020

EURUSD skyrocketed after the Fed’s decisions.

The major currency pair managed to update its highs after the Fed meeting. the current quote for the instrument is 1.2231. 

So, the December meeting of the US Federal Reserve ended in a quite expected way: the regulator will continue to increase its holdings of Treasury securities and agency mortgage-backed securities to support the country’s economy as long as it takes. There are some particular complications about the coronavirus vaccines and their effectiveness but there’s no need to boost this process. The Fed believes that consumer prices in the USA are rather weak, and in some sectors – even worse. 

In addition to that, the regulator emphasized some slowdown in the employment market – the sector has lost its positive momentum. Apart from this, the country’s population spends little money on services. 

The Fed kept the interest rate unchanged at 0-0.25%, just as expected. The regulator believes that it should print as much money as the economy will require, as long as it has to. Moreover, monetary policymakers are expecting Congress to join the stimulus program.

In this light, the USD plummeted and is still falling. However, the American currency has no other options: it’s difficult to stand tall when you’re about to be overloaded with liquidity.