The new interest rates hike was predicted by almost all analysts, and investors expected to see this announcement made. What they did not expect is to receive another statement about more changes until the end of the year and bond selling.
Meanwhile, the fresh economic data showed unexpected low results for the last March. This information pushed dollar and bond yields to the ground against the basket of six main global currencies.
This Thursday index of the dollar did not change much after it lost its pace on Wednesday after the report was published. It stays at the 96.323, shedding almost 6 percent this year.
The EU currency euro was equal to the 1.1220 dollars after it reached the 7 months highest peak in the 1.1296 dollars.
The dollar has partly restored its position against Japanese yen, and reached 109.54 yen, after hitting 8 weeks lows at the 108.81 yen.
As for the Treasury yield, they stood at the 2.103 percent, losing its 2.134 previous number.
According to the leading strategist Daisuke Uno, there is a strong impression that there is a huge gap between the real weak situation in the USA economy and Fed’s forecasts for the inflation.
He adds that it looks like Fed does not believe that this weakness can last for a long time. However, their hopes may be checked only by the next few months.
The same impression had other global analysts who consider the statement from Fed and the actual report as two different things.