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Upward move of EUR / USD on the Fed official's comments

Upward move of EUR / USD on the Fed official's comments

Jim Anderson - Public Relations

Officials suggest that, despite the absence of obvious harbingers of a recession, the US-Chinese trade war weakens business confidence, and the global slowdown in manufacturing activity may be enough to justify the need for quick and aggressive measures.

The head of the Federal Reserve Bank of New York, John Williams, said on Thursday that because of the low rates and inflation, officials couldn’t afford to take a pause in anticipation of economic problems. However, Williams did not say whether this means that he would support a rate cut later in June.

At the same time, Fed Deputy Chairman Richard Clarida said that officials may have to act quickly to stimulate the American economy as a hedge against growing risks.

The market quickly responded to comments from two high-ranking Fed officials. On Thursday afternoon, the EUR / USD pair started to move up sharply and by 3:00 pm New York time, the rate rose from 1.12170 to 1.12800.