Sberbank CIB expects breakthrough of the euro above 1.08

The outcome of the US Federal Reserve on Wednesday was not surprising to anyone. As expected, the interest rate remained at 0.75% and the regulator did not promised increase in the future. The text of the final statement barely changed, analysts say.
The Fed reiterated that it believed that the risks to its economic outlook are roughly balanced and expects a gradual tightening of policy. At the same time the regulator has made it clear that there is improvement in business and consumer sentiment, the analyst added.
For obvious reasons, given the uncertainty about the future policy of the new US President, Federal Reserve prefers to be careful and not to give specific dates for the next increase in interest rates, analysts said.
The probability of such an outcome during the meeting in March is estimated at only 30% and if the Fed wants to tighten its policy in March, it will have to make quite an effort to significantly change expectations and not to shock the markets, analysts say. From CIB still expect two increases in interest rates this year and are waiting for the next increase in the second quarter.