EURUSD is attempting to grow. Overview for 01.03.2022

EURUSD continues recovering after plummeting earlier.  

The major currency pair is recovering. The current quote for the instrument is 1.1175.

The local improvement of the EUR rate is looking rather logical; however, there are chances that the rate might resume falling in the nearest future amid active demand for “safe haven” assets, such as the “greenback”. As long as the fundamental background remains alarming, the American currency will remain quite strong. 

Apart from geopolitics and high associated risks, investors are still focused on the March meeting of the US Fed. The major question is the size of the first rate hike. Market expectations suggest 25 basis points.

Yesterday, one of the Federal Reserve Bank members said that the regulator should “put its foot down” and show that it was ready to take control over inflation. 

The clearer the Fed’s statements and actions, the better for the “greenback”. The key problem right now is the lack of comments on inflation and inflation expectations. If the Fed behaves more openly, the American currency might be more active.