EUR appears strong. Overview for 19.06.2023
The major currency pair is holding steady near its peak levels on Monday. The current EURUSD quote is 1.0940.
After the European Central Bank confirmed its hawkish approach towards interest rates, the euro gained favour. Although this was expected, it was still impressive. The beginning of the week brings little significant macroeconomic statistics, and investors are closely following the news relating to the US Federal Reserve System.
Less than a week has passed since the Fed decided to keep the interest rate unchanged at 5.25% per annum, but opinions have already been voiced about the need for further rate increases. Last Friday, two Fed officials emphasised the necessity of a new phase of interest rate hikes.
Christopher Waller and Thomas Barkin stated: "Just keep raising the interest rates. This is needed to bring inflation down to the target level of 2%. As noted by monetary policymakers, while the labour market is still strong, core inflation remains stagnant. Additional efforts might be required to try to lower it."
This signal should be taken seriously.
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.
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