EUR/USD Maintains a Neutral Stance Awaiting the ECB Decision.
The major currency pair is locked in a consolidation phase this Thursday, with the current EUR/USD exchange rate holding steady at 1.0745.
Yesterday, the US finally unveiled the highly anticipated CPI figures for August, revealing a 0.6% monthly increase in line with expectations. This marks the highest monthly increase since June 2022. Annual inflation has surged to 3.7%, surpassing the previous month’s figures.
The core CPI also exhibited a 0.3% month-on-month rise.
Factors such as the escalation in fuel prices may have contributed to this overall price uptick.
The unexpectedly high CPI values have injected uncertainty into the capital markets. The US Federal Reserve is likely to pause its series of interest rate hikes in September, with a 97% probability of such an outcome. However, come November, the Fed might opt for one final rate hike in this cycle, maintaining elevated rates until mid-2024.
Today, the European Central Bank is convening its meeting. The primary focus in the major currency pair centers on the ECB’s decision and accompanying commentary. While an immediate rate hike is unlikely, it may become necessary in the future as the inflationary pressures continue to intensify.
The post Euro/Dollar Remains Stagnant: Overview for September 14, 2023 appeared first at R Blog – RoboForex.
