EUR is rising steadily. Overview on 13.06.2023
The major currency pair strengthened on Tuesday. The current EURUSD 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.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.