EURUSD gains foothold. Overview for 28.08.2023

The major currency pair is in a consolidation phase on Monday. The current EURUSD exchange rate stands at 1.0810.

Last Friday, Jerome Powell, the Federal Reserve chair, delivered a speech at the Jackson Hole Economic Symposium in the US. The Fed’s stance came as no surprise. The regulator intends to continue raising interest rates if necessary.

The main factor for maintaining a hawkish stance is the price trend. The Fed believes inflation in the country is still at a considerable level. While the consumer price index has eased from its peak values, this is insufficient.

The restrictive monetary policy will remain in place for as long as the Federal Reserve and the economy deem necessary. The Fed's CPI target remains at 2%.

Investors were anticipating something similar, which is why reactions have been subdued. The US dollar is solidifying its position, but the volatility in EURUSD is expected to decrease.