The primary currency pair is dropping lower on Wednesday. The current EURUSD exchange rate stands at 1.0740.
Political instability in France is significantly impacting the euro. President Emmanuel Macron’s position has become shaky following the far-right party’s victory in the European Parliament elections. Rumours are circulating that Macron might also lose the forthcoming elections, which would jeopardise France’s financial stability. This factor is now adding to the euro’s imbalance.
The US Federal Reserve meeting is underway. The decision on the interest rate will be announced on Wednesday evening, and it is expected to remain unchanged at 5.25% per annum. The market is keen for fresh and relevant assessments of the economy and outlook.
The most crucial information the financial world awaits is the timing of the first easing of monetary conditions, with general forecasts currently referring to November.