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The EUR/USD pair continues to face noticeable downward pressure.

On Thursday, the primary currency pair experiences ongoing depreciation. The current exchange rate for EUR/USD is at 1.0807.

The pivotal event has transpired: the US Federal Reserve conducted its meeting, maintaining the interest rate at 5.5% per annum and offering the market additional insights into the future.

A reduction in borrowing costs in March appears unlikely due to the evident high inflation, which presents significant risks to the existing monetary policy. Currently, the interest rate is at its peak. According to Federal Reserve Chair Jerome Powell, if the economy progresses as anticipated, a reduction in the interest rate might be considered appropriate at some point later this year.

The Federal Reserve continues to grapple with achieving a sustained reduction in inflationary pressure. Otherwise, the regulator will refrain from taking steps whose consequences cannot be predicted.

It seems that market expectations regarding the focal activity around the interest rate are accurate: any decisive moves are postponed until May 2024.

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The post USD Demonstrates Strength: Overview for February 01, 2024 appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: USD Demonstrates Strength: Overview for February 01, 2024
Sourced From: blog.roboforex.com/blog/2024/02/01/usd-demonstrates-strength-overview-for-february-01-2024/
Published Date: Thu, 01 Feb 2024 08:40:30 +0000

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