EUR/USD maintains its upward trajectory.
The major currency pair shows no signs of losing steam on Tuesday as it continues to climb. The current EUR/USD exchange rate stands at 1.1250.
The US dollar remains weak, primarily due to market expectations surrounding interest rates. Discussions predominantly revolve around the credit costs in both the US and the Eurozone, along with their future outlook.
Recent indicators from the US suggest a slowdown in inflation and a certain stabilization in the labor market. The US Federal Reserve uses the Core PCE (Personal Consumption Expenditures) as a gauge for setting interest rates, which also shows a decrease in CPI (Consumer Price Index) pressure, though not as pronounced.
Despite the US economy displaying remarkable resilience during an extended period of high interest rates, there are limitations to its strength. The current interest rate of approximately 5.25-5.50% is considered restrictive, and the possibility of a recession will increase, regardless of market optimism.
Today, it is important to pay attention to US statistics on retail sales and industrial production for June.
The post Euro/Dollar Continues its Upswing – Overview for July 18, 2023 appeared first at R Blog – RoboForex.
