Dollar strengthens after the FOMC decision

The dollar climbed to a 14-month high after Federal Reserve officials raised their median estimate for the target rate on overnight loans between banks at the end of 2015 while maintaining guidance to keep borrowing costs low.

In fact Federal Reserve maintained its pledge to keep interest rates near zero for a ‘considerable time” after the end of quantitative easing, adding that the economy is growing at a moderate pace.

“Labor market conditions improved somewhat further” while “significant underutilization of labor resources” remains, the Federal Open Market Committee said on Wednesday in a statement in Washington.

Policy makers tapered monthly bond buying to $15 billion in their seventh consecutive $10 billion cut, staying on course to end the program in October. Bond purchases intended to hold down long-term interest rates have swelled the Fed’s balance sheet to $4.42 trillion.

Now the euro is presently plunging slightly on the four and one-hour charts as a result of the current strengthened dollar and current technical movements sending in fact the EUR/USD pair to trade up around $1.2868 while recording the highest level of $1.2981 and lowest level of $1.2881, knowing that the pair may incline but slightly as mixed signs are seen throughout the four-hour and one-hour momentum indicators.

As for the British Pound, it is also faintly dropping on a stronger dollar driving the GBP/USD pair to trade around $1.6274 while recording the highest level of $1.6358 and lowest of $1.6249 and is most probably going to remain at consolidated levels as mixed signs; buying and selling, are also witnessed at several time scale within the stochastic oscialltor.

Finally, as a result of mixed signs witnessed throughout the momentum indicators at different time charts the USD/JPY pair is consolidating around ¥108.29 while recording the highest level of ¥108.39 and lowest levels of ¥107.14.