The Federal Reserve led by chairman Jerome Powell does not please traders and investors at all at the end of this year.
Either the recent statements by the US President Donald Trump influenced the Fed or the committee actually thought about the future growth prospects of the American economy, but the fact remains a fact.
The minutes of the November Fed meeting signal that interest rates will be raised "pretty soon," but several executives expressed uncertainty about the timing of further rate increases. In the future, this may significantly affect the prospects for strengthening the US dollar, an upward trend in which may come to an end in the first half of next year, as major traders and investors will more closely monitor changes in the policy of the European Central Bank.
Let me remind you that the American leader has repeatedly criticized the Fed for the excessively rapid increase in interest rates, which hinders the development of the country's economy. Donald Trump had it particularly tough in expressing himself as he indulged himself in relation to the current Fed Chairman, Jerome Powell.
The protocols noted that the wording of the Fed's statement on the further gradual increase in interest rates may soon change. Now, the new statements of the committee regarding monetary policy will emphasize the importance of incoming economic data.
In the minutes of the November meeting, Fed leaders disagreed on the potential for further growth in the share of the economically active population. However, according to many managers, wage growth is consistent with trends in productivity and inflation.
Some executives felt that a stronger dollar posed a downside risk to growth and inflation in the United States, but almost all agreed that the risks to the outlook for the economy were generally balanced.
As for the forecasts of Fed experts, they almost did not change in terms of GDP growth in 2018. However, a slower economic growth is expected in the medium term.
Recent growth figures for the US economy are very impressed. According to another estimate in the third quarter of this year, the US GDP grew by 3.5% per annum, while economists expected the economy to show an increase of 3.6%. The data coincided with the expectations of the Ministry of Commerce.
As for the technical picture of a pair of the EUR/USD pair, the upward potential is maintained fairly high but currency pair bulls need a large sample resistance around 1.1400. Only after that can we expect a continuation of the uptrend to the highs of 1.1440 and 1.1470. In the case of a downward correction, which was observed yesterday in the first half of the day, it is best to return to long positions in risky assets from levels of 1.1355 and 1.1320.
The material has been provided by InstaForex Company - www.instaforex.com