EUR/USD Loses Steam After FOMC

EUR/USD attempted to extend its rally today but failed after the Federal Open Market Committee announced an end to the quantitative easing and made upbeat comments about the state of the US labor market. The dollar jumped against other currencies as a result.
US crude oil inventories increased by 2.1 million barrels last week and are near the upper limit of the average range for this time of year. The actual increase was below the predicted 2.1 million and the previous week’s 7.1 million. Total motor gasoline inventories decreased by 1.2 million barrels and are in the lower half of the average range. (Event A on the chart.)
As was widely expected, FOMC ended its asset-purchases program at today’s policy meeting, not waiting for the next month to do it. (Event B on the chart.) The Committee commented on the decision:

The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program. Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, the Committee decided to conclude its asset purchase program this month.

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