The primary currency pair on Tuesday is stuck in place. The current EURUSD exchange rate stands at 1.0765.
Today marks the beginning of a two-day meeting of the Federal Reserve System. The decision on the interest rate will be neutral – the rate will remain at 5.50% per annum. However, all attention will be focused on the Fed's comments regarding prospects: how, when and under what circumstances the cost of borrowing will decrease.
On Tuesday, fresh data on US inflation for November will be published. In the month-to-month comparison, the CPI is expected to be zero. On an annual basis, it may have decreased to 3.1% from the previous 3.2%.
On Thursday, the European Central Bank will hold a meeting. Rate hikes are on hold here, with investors expecting a future reduction. For now, the ECB's rate remains at the 4.50% level annually, and the deposit rate is at 4.00%. The ECB is reducing its balance according to plan. The European regulator's inflation target remains at 2%.
The ECB closely monitors price trends. By general calculations, in mid-2024, price pressure could be similar to its current levels.
This time, The ECB will present its macroeconomic forecasts alongside the interest rate decision. It is important to look at the GDP (a slowdown) and the labour market (local cooling) reports.