USD receives a signal. Overview for 06.07.2023
The major currency pair remains under pressure on Thursday. The current EURUSD quote is 1.0840.
The US dollar gained support from the Federal Reserve yesterday when it released the minutes of its last meeting, which was held two weeks ago.
Some monetary committee members are ready to support a 25-basis points rate hike in July. At the same time, it was noted that the employment market is tight, and the US economy is growing steadily. In addition, there are tendencies towards a decrease in inflation towards the 2% target.
However, in the longer term, the Fed is poised to slow down the pace of interest rate hikes. The Fed sees foresees potential signs of a recession in the country's economy and aims to prevent such a scenario.
According to the CME FedWatch data, there is an 89% likelihood of a 25-basis point interest rate increase at the July meeting. This is a supportive factor for the US dollar.
Today the US begins releasing its labour market statistics for June. The private sector employment data from ADP is worth a look.
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