The primary currency pair halted its decline on Tuesday but appears weak. The current EURUSD exchange rate stands at 1.0744.
The euro is currently at its lowest point since 8 December of the previous year.
The market is still absorbing information received earlier from the US Federal Reserve. This pertains to the comments made by Federal Reserve Chair Jerome Powell regarding the timing of interest rate cuts. After the meeting, Powell stated that monetary policymakers seek additional price statistics. This is necessary to form more opinions about the weakening inflation trend and the movement of inflation towards the 2% target.
According to Powell, the danger of an overly early rate cut lies in disrupting the positive performance of the past six months. The prudent approach is to take some time to observe and verify if inflation is indeed falling.
The next meeting of the Federal Reserve is scheduled for 19-20 March, when the Fed will not change the rate. The focal point of attention on this matter has shifted to May.
Meanwhile, statistical data released yesterday showed that the US economy is thriving. January's ISM non-manufacturing business activity rose to 53.4 points from 50.5 points earlier.