Forex

FOMC stated that US economy rehabilitation slowed down.

By Forex-Metal

Asian and European trading sessions:

Euro: The EUR/USD pair showed minimums in the range of $1,3130.

US Dollar: Market participants’ attention was totally concentrated on the today’s meeting of the Federal Open Market Committee and the principal rate decision. Undoubtedly, the principal rate would be left at the previous level, but the FRS decision regarding the incentive measures was vital. The publication of the FRS decision was planned at 18:15 GMT. The US Dollar rate grew and strengthened against the euro based on the above expectations.

British Pound: The GBP/USD rate showed minimums at the $1.5720 mark, as the speculations regarding the slow-down of the GB economy rehabilitation rate increased, due to the released fundamentals.

Japanese Yen: According to the expectations, the Bank of Japan left the principal rate unchanged at the level of 0.1%. The accompanying announcement stated that Japanese economy demonstrated signs of its moderate rehabilitation and that the Bank of Japan would keep the monetary policy soft. Japanese yen strengthened on Tuesday as the high-risk currencies dropped. The USD/JPY pair traded in the range of Y85.60 - Y86.05.

Australian Dollar: The Australian dollar dropped against the US dollar as the NAB business confidence for July and NAB business conditions for July decreased on Tuesday.

Oil: The oil traded in the range of $79.20 - $81.62 par barrel.

American trading sessions:

US Dollar: According to the forecasts, the principal rate was left unchanged at the historical minimums of 0.25%. Federal Open Market Committee also stated that the rate would be kept at this level for “extended period”.  According to the released statement, the economy rehabilitation slowed down. FRS would continue monitoring of the situation and would undertake all necessary measures to normalize its condition. As a result, most major currencies dropped  lower against the greenback. According to the expectations, the FRS concluded to reinvest its maturing agency and MBS securities in treasuries

Gold and Silver: Gold rate dropped to the $1200 price per ounce, and silver price decreased to $18.16 per ounce.

Oil: Oil rate decreased as well to $80.25 per barrel.