The EUR/USD pair has reached its lowest point since November 14, signaling sustained pressure on the primary currency pair this Wednesday. The current exchange rate for EUR/USD is at 1.0713.
Investor sentiment took a hit yesterday with the release of January’s Consumer Price Index (CPI) data in the US. Inflation saw a decline to 3.1% on an annual basis, down from 3.4%. Although this might be viewed positively, the actual figure fell short of the forecasted decrease to 2.9%. Core inflation for January exhibited a notable increase of 0.4% month-on-month, marking the highest growth rate since April of the previous year. However, on an annual basis, the indicator remained at 3.9%, disappointing market participants who had anticipated a drop to 3.7%.
These mixed statistical data prompted the market to recalibrate its expectations regarding the Federal Reserve’s timeline for an interest rate cut, subsequently bolstering the position of the USD.
Speculation about interest rates is anticipated to persist until the Federal Reserve provides clear timelines for its decisions.
The post EUR/USD Experiences Significant Weakness: Overview for February 14, 2024 appeared first at R Blog – RoboForex.