EURUSD reached its January highs; the USD remains weak.
The major currency pair moved upwards on Tuesday evening and remains quite strong on Wednesday, the current quote for the instrument is 1.2247.
The US Federal Reserve System continues providing the USD with negative news as its representatives, who were mostly “dovish”, confirmed yesterday that the regulator would stick to its soft monetary policy. It seems like financial markets are starting to get used to the Fed’s plans to support the US economy as long as it requires for a complete recovery. It means that the regulator isn’t planning to wind up its stimulus programs ahead of the schedule no matter how inflation behaves. This is bad news for the USD and financial markets reflect it in the prices quite well.
FOMС members that spoke yesterday said that recent CPI surges might be temporary and would die out soon because they were mostly connected with low deliveries.
In general, the rhetoric of the Fed and its representatives lies in the statement of the fact that the pandemic continues, that’s why the time for discussing any changes it the monetary policy hasn’t come yet.
The Fed told investors about this earlier but they wouldn’t believe it. Now, it seems like they really started to listen.
Other members of the Fed will speak later today, so the “nervous” period of the “greenback” is surely not over.