Today’s Market Overview

"Today’s Market Overview "The Federal Reserve reiterated its goals of unemployment rate below 6.5% and inflation below 2.5%.

Also the FED committee decided to leave monetary policy unchanged with key interest rate at record low between 0.0%-0.25% and will continue purchasing fixed income securities at $85 bln per month.

The US dollar index dropped to a more than 2-month low at 81.30, maintaining its downtrend style. In addition the ADP employment change excluding farming sector increased by 119K in April.

Investors are broadly focusing on ECB rate decision later today, where market participants widely expect a rate cut to 0.50% from 0.75%.

The single currency against the greenback in the recent trading advanced to 1.3240 before it retrace to 1.3153, however the pair was moving mainly on US dollar developments, with the euro being passive before ECB meeting.

Investors should cautiously trade on EURUSD as reaction on any decision is mostly unpredictable, rate cut most likely would set pressure on the pair however it could improve sentiment and eventually lift the pair.

The USDJPY in the intraday achieved its reversal pattern target approximately at 97.04 and formed a descending triangle therefore increasing chances for lower ground.

Anahit Stepanyan

Anahit is one of our content writers. She is notorious for her tendencies of writing in detail and precise articles. She is always very attentive with the details and will never write something if not sure that it is a fact. Her writing style is very unique and fresh, thus interesting and always informative. She is very lively and happy going person.

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