EUR/USD posted one of its biggest daily gains in history today as the FOMCs press release stated that the Federal Reserve will have to buy the long-term U. S. Treasury securities worth of $300 billion and it means that the money will be printed. The perspective of the increased amount of dollars pushed dollar down on Forex and it lost more than 3% today. EUR/USD is currently trading near 1.3441.
Consumer Price Index (CPI) rose by 0.5% in February in U.S. This growth followed the 0.2% gain in January and 0.3% forecast for February.
The U. S. current account deficit decreased to $132.8 billion in the fourth quarter of 2008. Thats less than $181.3 billion reported for the third quarter (revised negatively from $174.1 billion) and better than the median forecast of $137.1 billion.
Crude oil inventories increased by 2 million barrels last week and are still above the upper limit of the average range for this time of the year.
FOMC left the rates unchanged but issued another «stimulus package» promise for the U.S. economy. Unfortunately for the U.S. dollar it will flood the global financial system with the greenback:
To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve?s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.
