The U.S. economy could contract by 6.5% this year

The Federal Reserve said it expects the U.S. economy to contract by 6.5% this year and rebound 5.0% in 2021.

FOREX 7

Yesterday, and as expected, the Federal Reserve kept its key rate unchanged at 0.00%-0.25%. At the same time, the central bank said it expects the U.S. economy to contract by 6.5% this year and rebound 5.0% in 2021. The Federal Reserve also hinted at keeping interest rates near zero through 2022.

From a technical point of view, on a daily chart, EUR/USD has broken above the upper boundary of a triangle pattern and stands above its rising 50-day moving average (in blue). Readers may therefore consider the potential for further rise above support at 1.1000. The nearest threshold would be set at yearly top at 1.1495 and a second one would be set at set at 2019 high at 1.1565 in extension.

Source: TradingView, GAIN Capital


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