The primary currency pair remains under pressure on Wednesday. The current EURUSD exchange rate stands at 1.0713.
Data on the Consumer Price Index in the US for January, released yesterday, noticeably unsettled investors.
Inflation decreased to 3.1% on an annual basis compared to 3.4%. While this is positive, the forecast had expected a decrease of 2.9%. Core inflation for January accelerated to 0.4% m/m, the highest growth rate since April of last year. On an annual basis, the indicator remained at 3.9%, disappointing market participants since a decrease to 3.7% was expected.
These ambiguous statistical data served as the foundation for the market to adjust once again its expectations concerning the timing of the Federal Reserve's interest rate cut. This strengthened the USD's position.
It is believed that speculation about interest rates will persist until the Federal Reserve outlines clear deadlines.