EUR/USD Surged After FOMC Kept Interest Rates Near Zero

EUR/USD dropped today as low as 1.3074, but surged after FOMC announced that interest rates remain at their record low levels. EUR/USD trades currently at 1.3211.
Nonfarm productivity preliminary report showed today the decrease by a 0.9% annual rate in the second quarter of 2010, following the growth by 3.9% in the first quarter. The median forecast predicted a growth by 0.3%.
Wholesale inventories rose by 0.1% in June, compared to to the 0.5% growth in May. Analysts expected that the growth would remain at the same level as in May.
FOMC kept interest rates near 0.25 percent as “the pace of economic recovery is likely to be more modest in the near term than had been anticipated”. The statement also suggested that the rates would be kept at current level for some time:

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

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