The euro fell against the dollar on Friday, but the expected decrease was limited, as the recent statement by the Federal Reserve continues to lower the demand for the dollar. The dollar remains under pressure after the end of its two-day meeting. Last Wednesday the Fed gave no hint of when interest rates may rise. In addition, the Fed forecast a rate hike in the long run decreased from 4% to 3.75%.
The Central Bank decided to reduce its bonds buying by $10 billion a month to $35 billion, saying the U.S. economy is showing the "quite steady growth" to continue the reduction program.
The euro dollar continues to develop the growth structure for to the level of 1.3660. We do not rule out the breakdown increase 1.3680. Next, we expect a correction to the level of 1.3580. Further on - the breakdown increase and the 1.3680 figure formation continued growth in the refinement level of 1.3850.
The pound traded near a five-year high rate against the U.S. dollar on Friday after the upbeat data release on the UK government net borrowing, while the last Fed Monetary Policy meeting put pressure on the U.S. currency. The demand for the pound was also supported by expectations that the Bank of England would raise the interest rates earlier than other central banks.
The pair continues growing. The pair may reach 1.7070 this week then following the decrease to the level of 1.7000. After that we expect a growth to the level of 1.7115. On completion of this we expect the growth wave forward development and consolidation for the correction formation.
The dollar remains under pressure after the end of Fed two-day meeting. On Wednesday the Fed gave no hint of when interest rates may rise. In addition, the Fed forecast a rate hike in the long run decreased from 4% to 3.75%.
The Japanese yen rose on 0.1 percent against the U.S. dollar
The pair broke the correction channel and continues to develop the reduction structure. Today we consider level 101.00. Next we expect the bottom level of 101.70 test. Further on we consider the possibility of another decrease structure to level of 100.50.