EUR is consolidating. Overview for 03.04.2023

EURUSD on Monday looks neutral. The current quote is 1.0790.

This week not only starts a new month but also opens a quarter. Many important reports are scheduled for this period, so investors will definitely need forces.

Last Friday, the US presented a cardinal release of the basic personal consumption expenses index in February. This is the component of inflation that the Federal Reserve System studies most attentively before making an interest rate decision. For example, the Core PCE grew by 0.3% m/m instead of the 0.4% predicted and after growing by 0.5% previously.

Year by year, the index dropped by 5%. This had a bad influence on the USD: the Fed might consider that the prices are falling at acceptable speed and might take a pause in the increases of the interest rate.

Personal expenses of Americans in February grew by 0.2% m/m instead of the expected 0.3%. The income, in turn, grew by 0.3% instead of the 0.2% predicted. Things are quite neutral, keeping in mind the possible amplitude of normal fluctuations here.

The final Michigan University CCI in March dropped to 62 points from 63.4 points previously. This might be connected to the slowdown of consumer activity on the whole.