Reuters – The EURUSD currency pair has maintained a steady position, hovering around the $1.1 value, in the wake of recent economic developments. Investors are digesting crucial inflation statistics and PMI (Purchasing Managers’ Index) data. This comes alongside insights from the Federal Reserve’s latest meeting in December.
Notably, December saw a rise in inflation rates in Germany and France. This increase is primarily attributed to soaring energy prices, which align with what the markets had anticipated. Meanwhile, in other economic updates, the Eurozone’s private sector showed signs of contraction for the seventh consecutive month, according to the PMI survey. However, the downturn is not as severe as previously thought.
Furthermore, the Federal Reserve meeting minutes did not provide clear indications about when we might expect rate cuts. The policymakers have stressed the importance of maintaining higher interest rates for an extended period, suggesting a cautious approach shortly.