EUR/USD finds stability after a challenging week.
The major currency pair is currently in a consolidation phase on Monday. The current EUR/USD exchange rate is set at 1.0810.
Jerome Powell, the Federal Reserve Chair, delivered a speech at the Jackson Hole Economic Symposium in the US last Friday. The Fed’s stance came as no surprise; the regulator intends to persist in raising interest rates if necessary.
The primary reason for maintaining a hawkish stance is the prevailing price trend. The Fed contends that inflation in the country remains at a significant level. Although the consumer price index has eased from its peak values, it remains insufficient.
The tight monetary policy will continue as long as both the Federal Reserve and the economy deem it necessary. The Fed’s CPI target remains at 2%.
Investors had been anticipating a similar stance, which is why reactions have been relatively subdued. The US dollar is solidifying its position, and volatility in EUR/USD is expected to decrease.
The post Euro/Dollar Holds Steady – Overview for August 28, 2023 appeared first at R Blog – RoboForex.
