The primary currency pair maintains its upward trajectory on Wednesday. The current EURUSD exchange rate stands at 1.0707.
The currency market is witnessing increasing risk appetite, allowing EURUSD to regain its position. At the same time, investors are unwinding some of the oversold positions in EURUSD.
US statistics released yesterday confirm that pro-inflationary factors remain significant, meaning that the Federal Reserve has more arguments in favour of maintaining elevated interest rates for a prolonged period.
In March, sales of new homes in the US surged 8.8% month-over-month, reaching 693 thousand, compared to February's 637 thousand. The statistics surpassed expectations. In addition, the average price of a home sold increased significantly.
US consumers are rapidly adapting to complex fiscal conditions and continue to implement their purchasing plans, keeping inflation at a significant level. While this is a positive signal for the US dollar, the market is currently not considering this factor, looking at the situation more globally.