The main currency pair is hovering at the local lows on Monday. The current EURUSD exchange rate stands at 1.0786.
After the lull on Friday, the US dollar’s positions remain stable. At the same time, the price statistics from earlier confirm the chances for a soon Fed’s interest rate cut. It might happen in June, when the interest rate could drop by 25 basis points from the current 5.5% per annum.
The US personal consumption price index in February demonstrated a 0.3% surge instead of rising by 0.4% as forecast. Nevertheless, consumer spending grew at this year’s fastest speed last month. This means the economy is rather stable because loan costs are high.
The Fed’s representative Jerome Powell stated that the latest inflation data agreed with what the Federal Reserve would like to see.
Now the market estimates the probability of an interest rate cut in June at 68% after 57% last week. On the whole, the interest rate might lose 75 basis points in 2024.