EUR is still weak. Overview for 01.06.2023

The major currency pair remains in a weak position on Thursday. The current EURUSD quote is 1.0680.

The US House of Representatives passed a bill to raise the country’s national debt ceiling yesterday. The initiative was supported by 314 politicians while 117 politicians voted against it. This is now subject to the Senate's approval.

The agreement in principle involves raising the borrowing limit ceiling by 4 trillion USD for two years. This also implies a reduction in US non-defense spending. The targets for spending cuts include the migration programme, the tax service, the fight against coronavirus, and so on.

Interestingly, the market tension has not changed a bit. The stock exchanges are still in favour of the USD.

Attention is now shifting to the topic of the US Federal Reserve interest rates. One of the ardent supporters of Fed Chairman Jerome Powell's approach, Philip Jefferson, signalled that the June meeting of the regulator would end with a decision to pause. Not raising interest rates would give policymakers time to collect data and not prevent further tightening, Jefferson said. Most likely, Jefferson is conveying the current point of view.