EUR attempts to rise. Overview for 22.01.2024

The primary currency pair is strengthening on Monday. The current quote in EURUSD is 1.0904.

The Federal Reserve currently resembles parents on a long journey with small children, constantly answering "Are we there yet?" This question pertains to the interest rate. Everyone expects the rate to change, but when exactly will it happen? Is it sure to be in March? What if it is later? There are no answers to these questions yet.

At the meeting on 30-31 January, the Fed will keep things unchanged because there was insufficient time to gather inflation data. The current focus is on the March meeting.

Approximately half of the Fed's monetary policymakers believe rates can be decreased in the first half of 2024 if inflation falls more rapidly than expected. The other half of Fed officials hold a more conservative stance.

Much depends on operational data. The Fed unquestionably needs to see more evidence that the inflation trend is returning to 2% before deciding to ease monetary conditions.