EURUSD managed to recover a little bit after plummeting last week.
The major currency pair reached stability after plunging earlier. The current quote for the instrument is 1.0809.
Last week’s low was 1.0756.
The currency market remained calm yesterday after the Easter holidays and investors were slowly getting back to their normal style of life but only until the moment when the US policymakers started talking about the interest rate issue. For example, the president and CEO of the Federal Reserve Bank of St. Louis James Bullard said once again that the rate should reach 3.5% by the end of 2022. He believes that the US Fed shouldn’t exclude a possibility of a 75-point hike in May to make its fight against inflation more effective.
Market players are looking forward to the May meeting of the American regulator. The hike size is still not clear. Earlier, monetary policymakers mentioned a possible 50-point hike but the inflation boost didn’t stop. It means that the regulator might have to be more aggressive.
Bullard’s “hawkish” comments supported the “greenback” by boosting the US bond yield. However, a little bit later the USD corrected because market players do not really believe in the global tightening scenario. After all, the Fed has six more meetings in 2022, so the regulator may raise the rate quite slowly without creating too much pressure and emotions in the market.
There are a few important statistics today but later today investors might want to pay attention to the Fed Beige Book.
