01.02.201809:17 Forex Analysis & Reviews: The Fed leaves the policy unchanged

The US dollar did not receive serious support from large investors after the US Federal Reserve left interest rates unchanged. This fully coincided with the majority of economists' forecasts

According to the data, the Fed left the range of interest rates on federal funds unchanged between 1.25% and 1.50%. This decision was made in the ratio of votes of 9 against 0. The Fed also left the discount rate at 2.00%.

The committee said that changes in the course of the current monetary policy are not planned despite the fact that inflation expectations in the market have increased.

It is expected that the US economy will grow at a moderate pace as economic activity continues to increase and the labor market will remain strong.

In a statement, the Fed also pointed out that inflation will grow this year and stabilize around 2% in the medium term and overall inflation risks will remain balanced. Despite this, the Fed's leadership will continue to closely monitor inflation.

The Fed unanimously reiterated its statement regarding the long-term goals of monetary policy.

Data on the growth rate of labor costs in the US did not affect the quotations of the US dollar. Some experts note that such a phenomenon is inevitable since low unemployment begins to exert upward pressure on wages and benefits.

According to the report of the US Department of Labor, the index of labor costs in the fourth quarter of 2017 increased by 0.6% compared to the previous quarter, which fully coincided with the forecasts of economists.

The number of signed contracts for the sale of housing in the US for the month of December increased.

According to the National Association of Realtors, the index of signed contracts for the sale of housing in December rose by 0.5% compared to the previous month, to 110.1 points. Economists also expected that the index will grow by 0.5% in December. In comparison with the same period of the previous year, the index also grew by 0.5% in December.

As for the technical picture of the EURUSD pair, the pressure on the euro persists even though the buyers managed to update the highs of the previous day yesterday. At the moment, a break of the lower border of the rising channel in the region of 1.2390 may lead to a deeper downward correction for the euro with a return to the levels of 1.2340 and 1.2290 in the short term.