The major currency pair has not lost momentum by Tuesday and keeps ascending. The current EURUSD quote is 1.1250.
The US dollar remains weak; the problem is in the expectations concerning the interest rate. In one way or another, market talks are mostly concentrated on the credit costs in the US and the Eurozone as well as the outlook for these rates.
The latest signals from the US represent a slowdown of inflation and certain stabilisation of the labour market. The US Federal Reserve, deciding upon the interest rate, uses the Core PCE instead of the main inflation index. The former also demonstrates a decrease in the CPI pressure, though not so noticeable.
The US economy shows a marvel of sustainability within the long period of high interest rates, yet it has some limits to its strength. The interest rate of around 5.25-5.50% is restrictive and the chances for a recession will rise no matter how happy markets feel about the prospects.
Today it is worth paying attention to the US statistics on retail sales and industrial production in June.