The primary currency pair appears relatively weak on Monday. The current EURUSD exchange rate stands at 1.0875.
The market perceived the comments from Jerome Powell, the Fed’s chair, on future interest rates as too mild. He noted that insufficient or excessive stimulus risks are now more balanced. Investors considered Powell’s tone too cautious.
According to Powell's assessment, the current format of the US monetary policy is slowing down economic growth as expected. However, the Federal Reserve is prepared to tighten monetary conditions further if it deems necessary.
Investors drew the following conclusions: the Fed’s comments are too mild, meaning that the Fed considers its actions correct and can afford to patiently wait for the effects of the measures taken without adjusting interest rates.
Today, it is worth paying attention to the Sentix Investor Confidence Index statistics in the eurozone and the volume of factory orders in the US.