The main currency pair remains under pressure; investors are waiting for the March meeting of the US Federal Reserve.
EURUSD is still falling slowly on Monday morning. The current quote for the instrument is 1.2260.
This week “belongs” to Central banks. The most anticipated event of the week is the March meeting of the US Federal Reserve, which will last until Wednesday evening. When it comes to the key rate, everything is quite clear: 100% expectations of the rate increase have already taken into account by investors, because the regulator’s members confirmed this fact on several occasions. The most intriguing thing is the comments that will follow the meeting: is the regulator going to revise the rate upwards four times this year as Powell said earlier or his rhetoric will be more careful?
Since there are no important macroeconomic statistics from the USA on Monday and Tuesday, investors’ attention will be totally focused on the FOMC meeting and a little bit on the numbers from Europe.
The preliminary reading on the US Consumer Sentiment from the University of Michigan was positive. The indicator increased up to 102 points in March, although it was expected to fall up to 99.6 points, which is worse than the February number of 99.7 points.
It is a good signal for both the USD and the American economy, although it shouldn’t be overestimated. Positive attitude of consumers may later make a difference in the Consumer Spending and the total Inflation Rate.