EURUSD Intra-Day Fundamentals - Federal Funds Rate and 42 pips price movement
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EURUSD Intra-Day Fundamentals - Federal Funds Rate and 42 pips price movement

28 January 2015, 20:43
Sergey Golubev
Sergey Golubev
0
347
2015-01-28 19:00 GMT (or 21:00 MQ MT5 time) | [USD - Federal Funds Rate]
  • past data is 0.25%
  • forecast data is 0.25%
  • actual data is 0.25% according to the latest press release

if actual > forecast (or actual data) = good for currency (for USD in our case)

[USD - Federal Funds Rate] = Interest rate at which depository institutions lend balances held at the Federal Reserve to other depository institutions overnight. Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

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"To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. The Committee also reaffirmed its expectation that the current exceptionally low target range for the federal funds rate of 0 to 1/4 percent will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 percent, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent."

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EURUSD M5: 42 pips price movement by USD - Federal Funds Rate news event :




#technical analysis, fundamental analysis, FOMC
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