The primary currency pair decreased on Friday. The current exchange rate for EURUSD stands at 1.0874.
The dollar seems poised to end a three-week losing streak, and statistics support it. However, investors are starting to doubt the Fed's prospects.
The February US Producer Price Index (PPI) rose by 0.6%, surpassing the forecasted 0.3% increase. This is the second consecutive sign that prices in the US are growing and poised to impact the economy further. The main inflation reports released on Tuesday were also disappointing.
Currently, the market estimates a 60% probability of the Fed interest rate cut in June, down from 74% a week ago.
The Federal Reserve will meet on 19-20 March next week. No changes to the interest rate are expected at this meeting as it is yet to be the appropriate time. All attention will be focused on economic forecasts and Fed Chair Jerome Powell's comments.