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The EUR/USD pair is gradually experiencing a decline in anticipation of the Federal Reserve's decision.

The primary currency pair is on a downward trend this Wednesday, with the current EUR/USD exchange rate standing at 1.0820.

This evening marks the conclusion of the US Federal Reserve's meeting, during which the regulator will make decisions on interest rates and potentially provide insights into the timing of the first reduction in loan costs in this cycle.

The interest rate is expected to remain at 5.5% per annum.

The most critical piece of information to be unveiled today is whether the decision will be in March or May.

Amidst the anticipation, let's turn our attention to the eurozone's statistics. Recent data suggests that the eurozone managed to avoid an unexpected economic downturn in Q4. However, the economy is still grappling with stagnation, offering less optimistic news.

In the October-December period, the eurozone's GDP remained unchanged, defying expectations of a 0.1% q/q contraction. At the end of last year, the region's economy experienced a 0.1% year-over-year growth, surpassing forecasts.

Eurozone member countries are contending with the adverse effects of high interest rates, weak foreign demand, and mounting pressure from geopolitical factors. For some economies, the start of 2024 has been relatively weak, notably with Germany showing signs of recession.

The absence of a recession at the eurozone level is positive news for the euro, but the focus remains on the interest rate issue.

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The post EUR/USD A Pivotal Day: Overview for January 31, 2024 appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: EUR/USD A Pivotal Day: Overview for January 31, 2024
Sourced From: blog.roboforex.com/blog/2024/01/31/eur-usd-a-pivotal-day-overview-for-january-31-2024/
Published Date: Wed, 31 Jan 2024 08:51:09 +0000

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