New strength for EUR/USD impulse | 22 February 2024
22 February 2024, EUR/USD
EURUSD:
The EUR/USD pair continues its growth. As a result of the publication of the Federal Reserve meeting minutes, the pair rose to the level of 1.0820 during the Asian session on Thursday. The recovery of the major pair is due to a moderate decline in the US dollar (USD) and lower US Treasury bond yields.
The Federal Open Market Committee (FOMC) meeting minutes revealed policymakers' concerns about the timing of interest rate cuts, suggesting that policy easing will not begin in the upcoming meetings. This stance could be influenced by stronger Consumer Price Index (CPI) and Producer Price Index (PPI) readings for January, as well as strong employment data for February.
Market participants have largely abandoned expectations for interest rate cuts in March and May, but continue to anticipate that the first cut will occur in June. According to the CME FedWatch Tool, the probability of a 25 basis point (bps) rate cut in June is 52.2%.
Trade recommendation: Trade predominantly on Buy from current values
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The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
