EURUSD has reached a new five-week peak. Overview for 15.05.2024

The primary currency pair is advancing on Wednesday. The current EURUSD exchange rate stands at 1.0822.

Upbeat comments from Jerome Powell, the US Federal Reserve chair, regarding the state of the US economy weighed on the US dollar. He gave a relatively confident outlook on GDP growth rates. Powell believes that the economy is still growing more vigorously than the trend. Additionally, he is convinced that inflationary pressures will ease. Despite recent statistics that could challenge this confidence, Powell remains steadfast in his optimistic views.

This year, high consumer prices have prompted the Federal Reserve to alter its monetary policy trajectory, compelling it to abandon its monetary easing strategy to gather more data.

Investors anticipated six interest rate cuts in January, but now, only one is expected. According to the CME FedWatch monitor data, the interest rate may be lowered by a maximum of 45 basis points this year, with the first cut expected in September.

Today is crucial as the market awaits inflation and retail sales data for April.