On Wednesday, the Euro-Dollar exchange rate fell to the support of 1.1810.
The US currency rose sharply in price, the market did not like the prospects of tightening monetary policy even in the long term. The updated median forecast of the members of the Open Market Committee now assumes two rate hikes by the end of 2023. 13 of the 18 FOMC members favored at least one rate hike by the end of 2023. In March, there were only seven of them. 11 of the 18 committee members forecast at least two rate hikes by the end of 2023.
The regulator also raised the forecast of US GDP growth for 2021 to 7% and left the same forecast for 2022 at 3.3%. The accompanying statement says that the progress of vaccination has reduced the spread of the coronavirus in the United States. Thanks to this progress and strong monetary support, indicators of economic activity and the labor market have improved. The Fed also kept the target range of the federal funds rate at 0-0.25% and left the volume of the asset purchase program unchanged at $120 billion per month. The status quo will continue until further significant progress is made in the labor market and in the area of inflation, the regulator said.
Forex trading. Euro-Dollar EUR/USD forecast for today, 17 June 2021
In our forecast, we expect a corrective growth of the Euro-Dollar exchange rate to the levels of 1.1830, 1.1850 and 1.1875.