The Fed kept its interest rate unchanged this week as widely expected by analysts. The Fed said that the U.S. economy is expected to continue to expand moderately, while the U.S. labour market is expected to continue to strengthen. But the Fed noted that developments abroad could have a negative impact on the U.S. labour market and inflation.
Today's U.S. gross domestic product (GDP) and personal consumption expenditures (PCE) price index showed that the economic growth and inflation pressures slowed in the fourth quarter. Other economic data remained mixed.
It is likely that the Fed will not hike its interest rate at its March meeting if the U.S. economy will not accelerate.
Oil prices remained volatile this week. Oil prices recovered as market participants speculated that top oil producers could cooperate and cut their oil production. But OPEC denied that, but noted that it is ready to cooperate.
Concerns over the global oil oversupply are likely to continue to weigh on oil prices as Iran's oil output rose and the country plans to continue to boost its output.
The European Central Bank (ECB) is likely to be in focus in the coming weeks. The ECB President Mario Draghi hinted at a press conference last week that the central bank may add further stimulus measures at its meeting in March as downside risks rose.
The Bank of Japan's (BoJ) Friday lowered its interest rate for the first time ever to -0.1% from 0.1%, adding that it could cut its interest rate further if needed. Analysts did not expect this decision.
The start is done this year. The ECB could be the next major central bank that will add further stimulus measures.
It is likely that the currency pair EURUSD will rise toward the resistance level at $1.1000, if the U.S. economic data will be negative or there will be negative news from China and no negative news from the Eurozone.
If the U.S. economic data will be positive and in case of the negative news from the Eurozone, the currency pair EURUSD may test the level at 1.0700.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.