EURUSD is trading in a narrow range despite the decline in the US dollar

Mohammed Abdelkhalik
September 24, 2021

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EURUSD traded in a limited range on Friday morning in the European market, this stability comes despite the continued decline of the US dollar, after the results of the Federal Reserve meeting, which increased the chances of starting to reduce its monetary policy.

The EURUSD pair stabilized at the level of $1.1737, the pair recorded the highest level at $1.1749, and the lowest level at $1.1736.


EURUSD is rising before the FED decision

The focus of the markets during this week was on the Federal Reserve’s decisions regarding its monetary policy, as it decided to keep interest rates at their current levels, unchanged between the ranges of 0% – 0.25%, and indicated the possibility of raising them to reach 1.8% until the end of 2024. , to be raised three times in 2023 and three times in 2024.

Meanwhile, Federal Reserve Chairman Jerome Powell confirmed the possibility of starting to reduce his stimulus program by the end of this year.

The US dollar is nearing its lowest level in a week

The US dollar recorded a decline against a basket of major currencies in the morning trading on Friday, but it remains stable near its lowest level in a week, which was recorded earlier in trading.

The dollar index traded at 93.105 points, down by 0.08%.

Market fears eased after the People’s Bank of China announced its intervention in the Evergrande real estate crisis, as the bank announced that it would inject new liquidity into the market after the company announced that it would pay off debts.

The Federal Reserve decided this week to keep interest rates unchanged and stressed the possibility of starting to reduce its stimulus program by the end of this year, and Bank President Jerome Powell said that with economic growth continuing at a good pace, it is expected that the program will be cut Motivational during the next meeting to be held in the month of November.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.