Euro Rose to 2-Week Maximum Against US Dollar

The US dollar is trading lower against the major currencies in anticipation of the FOMC protocol. The euro rose to a two-week maximum against the weakening US dollar on the background of the fact that Catalonia could not officially declare independence from Spain.

In the accompanying statement and economic forecasts, it was suggested that the Fed is not too concerned about the recent slowdown in core inflation. The forecast of core inflation for 2017 and 2018 was revised slightly lower. But the forecasts of core inflation for 2019 and 2020 remained unchanged.

The IMF forecasts growth of the world economy by 3.6% in 2017 and 3.7% in 2018 compared to the April forecast by 3.5% and 3.6%, respectively. Meanwhile, the IMF lowered the US growth forecast to 2.2% in 2017 and 2.3% in 2017, compared with the forecast in April of 2.3% and 2.5%, respectively.