EUR/USD traded with a great deal of the intraday volatility today, influenced by the expectations regarding Fed’s interest rate decision and Greek bailout. The currency pair was rising during the early trading session and decreasing later. It stabilized near slightly above its open level at 1.3188.
FOMC has decided to leave the interest rates unchanged in a range between 0% and 0.25%. The statement shows that the Fed is expecting a continued moderate growth of the economy and a “subdued” inflation rate. One of the board members (Thomas M. Hoenig) voted against the decision, stating that:
…continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to a
Crude oil inventories increased by 1.9 million barrels last week, while the total motor gasoline inventories fell by 1.2 million barrels in U.S. Both are above the upper limit of the average range for this time of year.
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