EURUSD successfully continues its positive momentum; all eyes are now on the Fed and statistics.
The major currency pair recovered pretty much yesterday. The current quote for the instrument is 1.1041.
The local improvement in geopolitical tensions had an immediate impact on EURUSD – the demand for the “safe haven” USD dropped and the European currency managed to regain some positions.
Market players are currently discussing the upcoming meeting of the US Fed. There is an opinion that the regulator might refrain from cutting its balance during its March meeting. Most likely, the Fed’s comments will be rather neutral and say that it is still going to cut its balance but a bit later. When? We’ll know in the next several weeks. The regulator has now to consider geopolitical tensions and possible consequences in the global market. It’s impossible to make such assessments quickly, they require time.
The postponement of the Fed’s balance cut is good news for the US stock market.
However, the plan to cut the balance didn’t go anywhere – it might start after the rate hike.
The key aspect expected right now is a 25-point rate hike after the meeting on 15 and 16 March. There is a scenario that implies a 50-point hike but it’s quite unlikely.
Later today, investors should pay attention to the US data: the weekly Unemployment Claims report and The Consumer Price Index in February. The strong labour market report will support the “greenback”. On the other hand, market players have already got used to high inflation and aren’t expected to respond actively.
Source: Roboforex
