The primary currency pair is decreasing on Wednesday. The current EURUSD exchange rate stands at 1.0820.
This evening, the US Federal Reserve’s meeting will conclude. The regulator will decide on the interest rate and likely provide indications regarding the timing of the first reduction in loan costs in this cycle.
The interest rate will remain at 5.5% per annum.
March or May? This is the most crucial piece of information to be uncovered today.
While everyone is in anticipation, let us turn to the eurozone’s statistics. According to data from yesterday, the eurozone avoided an unexpected economic downturn in Q4. However, the economy remains stagnant, presenting less positive news.
The eurozone’s GDP in October-December remained unchanged, contrary to the expected 0.1% q/q contraction. In the year-over-year comparison at the end of last year, the region's economy rose by 0.1%, surpassing forecasts.
The eurozone member countries face the negative consequences of high interest rates, feeble foreign demand, and increasing pressure from geopolitical factors. For certain economies, the beginning of 2024 turned out relatively weak, considering that Germany is giving in to recession.
The absence of recession at the eurozone level is positive news for the euro, but the interest rate issue remains in focus.