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EUR/USD rises higher, driven by market risk appetite.

The major currency pair strengthened on Tuesday. The current EUR/USD quote is 1.0800.

The focus is on the Central Bank meetings, as the announcement of their decisions can significantly impact currency volatility. The US Federal Reserve begins its two-day meeting today and is expected to announce the level of the interest rate on Wednesday. It currently stands at 5.25% per annum. It is very likely that the lending cost will remain unchanged as it is already embedded in the euro/dollar quotes. Nevertheless, the Fed's comments will have a substantial impact.

The European Central Bank meeting will be held on Thursday. The anticipated scenario suggests an interest rate hike of 25 basis points to 4.00% per annum. The ECB needs to take more active measures to combat inflation, otherwise, its previous efforts will be in vain.

Before the Fed announces its verdict, data on the US consumer price index for May will be released. Inflation is expected to have decreased to 0.2% m/m. This would be another argument in favour of a pause in the series of monetary policy tightening.

The post The euro is rising steadily. Overview on 13.06.2023 appeared first at R Blog - RoboForex.

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By: Timofey Zuev
Title: The euro is rising steadily. Overview on 13.06.2023
Sourced From: blog.roboforex.com/blog/2023/06/13/the-euro-is-rising-steadily-overview-on-13-06-2023/
Published Date: Tue, 13 Jun 2023 09:53:33 +0000

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