EURUSD took a break in growing on Thursday. The current quote is 1.0840. The general market attitude remains favourable: investors are taking adequately the risks around the US and European banking situation and are not avoiding deals. Meanwhile, EURUSD seems to have lost the ascending impulse. The dollar is affected negatively by the expectation that the Fed is going to put an end to the tight interest rate policy.
Today the interest rate is already 5%, and the future is unclear. However, the longer it takes the Fed to make the decision to lift the rate again and the harder this decision is, the more frequently investors think about the end of this trend.
Today the US will publish the final fourth-quarter GDP valuation. The economy is expected to have grown by 2.7%, as estimated before. If so, this will be a dubious achievement for such a mighty system. The key release of this week is scheduled for Friday. This is the Core PCE, the price index of base personal expenses that the Fed keeps a close eye on. In February, it might have grown by 0.4% m/m against 0.6% m/m in January. This will mean that inflation is, indeed, fading.
