20, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

This week main event was the U.S. Federal Reserve meeting announcement. The regulator as it was expected earlier decided to taper the QE-3 incentive program further having cut $10 billion more from July 1.

The guidelines on the monetary-credit policy tighten remained unchanged - the federal funds rate growth will not happen before 2015. The only one of 16 leaders suggested that the Fed could raise the interest rates in the late 2014. The Reducing unemployment and the moderate inflation were positively received by the FOMC members in recent months.

The only thing that upset the "bulls" was the current year economic growth forecast decrease while the 2015 and 2016 forecasts remained unchanged. The Chairman Yellen said that "the Fed intends to keep rates near zero for a long time after the bond buying completion."

The pound fell after the Bank of England last meeting minute’s publication, but then leveled all the losses. The minutes signaled about the possible, but unlikely rates increase in 2014.