EURUSD started the week neutrally. The current quote is 1.0690.
There has already happened a bounce in the market major, and today is a day off in the US, while Europe has not statistics prepared for publication. Investors have got a chance to take a pause and analyse the situation.
In fact, there is nothing new on the horizon. The market remains focused on future steps of the Federal Reserve System. While earlier the market expected the Fed to increase the interest rate twice by 25 base points each time and put tightening on a pause, nowadays there is no confidence in this.
After the production inflation report got published, it became clear that the price dynamics had not been conquered. The growth of prices has stopped just temporarily and has come to an end on several directions.
This lets the Fed use all available means for fighting with inflation. For the USD, this is a fundamental support.