The major currency pair appears stable on Tuesday. The current EURUSD exchange rate stands at 1.0680.
All the time that has passed since the meeting of the European Central Bank, the euro exchange rate has been trying to recover but has so far failed to do so. In fact, the euro has been maintaining a weak position for nine weeks with the euro/dollar pair dropping by nearly 5% over the last three months.
The market believes that the ECB is unlikely to raise the interest rate above 4%. This is attributed to the weakening of the eurozone’s economy with the prospect of a recession looming on the horizon.
A two-day meeting of the US Federal Reserve starts today, making it a crucial day. The meeting will end on Wednesday with a decision on the interest rate. The indicator is likely to remain unchanged at 5.50% per annum. However, the market is more interested in comments that will shed light on the regulator’s future decisions.
The market may be extremely nervous until the interest rate decision is announced, and Jerome Powell, the Fed’s chair, delivers a speech.