EURUSD: Fed’s interest rate is in focus again. Overview for 24.10.2022

October 24, 2022

Article By RoboForex.com

On Monday, the EURUSD major looks quite stable. The current quote is 0.9840 In the US Fed, they are discussing an increase in the interest rate by 75 base points again, as reported in a WSJ publication. Some members of the monetary committee do not exclude the chance for a slow-down in the tightening of the credit and monetary policy later. The Fed will hold a meeting at the beginning of November.

On Thursday this week, the European Central Bank will also have a meeting. As a result, the interest rate might grow by 50 or even 75 base points, or at least this is what the inflation situation requires. According to average market expectations, the ECB interest rate will have reached 3% by the end of Q1, 2023.

Increased price pressure on the economy might become the factor that will make the ECB act more decisively. It should also be remembered that the European regulator has already acknowledged the CPI as a serious trouble, though it refuse to move as fast as the Fed.

The chance for a higher than usual increase in the interest rate supports the EUR.

Article By RoboForex.com


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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

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