EUR remains expensive. Overview for 26.02.2024

The primary currency pair appears strong on Monday. The current EURUSD exchange rate stands at 1.0822.

Although the week begins calmly, investors will have numerous reasons to react later.

The US inflationary components will be particularly crucial, given the Federal Reserve’s cautious stance on interest rates.

On Thursday, the inflationary components, including core PCE and details, which are highly important to the Fed, will be released. The indicator is expected to have risen by 0.4% m/m in January, which is significant in a situation where a decrease in inflationary pressure is anticipated. The PCE will attract much attention as it is the Federal Reserve’s favourite inflation report.

The Federal Reserve seems unable to find compelling reasons to lower the interest rate in May. The market has long ceased to expect any cuts in March, and the rate bets for May are also fading away. The market now looks to June, but it will be clearer once the new inflationary facts arrive.