The pressure of expectations weighs on EUR/USD.
On Tuesday, the primary currency pair temporarily halted its decline but remains vulnerable. The current EUR/USD exchange rate is at 1.0744.
The euro is currently at its lowest point since December 8 of the previous year.
The market is still digesting information from the US Federal Reserve, particularly the comments made by Federal Reserve Chair Jerome Powell regarding the timing of interest rate cuts. Following the meeting, Powell mentioned that monetary policymakers are awaiting additional price statistics to form more comprehensive opinions about the weakening inflation trend and its trajectory toward the 2% target.
Powell emphasized the risk of an overly early rate cut, which could disrupt the positive performance of the past six months. He advocates a prudent approach, taking the necessary time to observe and verify if inflation is indeed experiencing a decline.
The next meeting of the Federal Reserve is scheduled for March 19-20, during which the rate is not expected to change. The focal point of attention on this matter has now shifted to May.
Meanwhile, recent statistical data indicates a thriving US economy. The ISM non-manufacturing business activity for January increased to 53.4 points from the previous 50.5 points.
The post EUR Has Reached an Eight-Week Low: Overview for February 06, 2024 appeared first at R Blog – RoboForex.