EUR had to retreat again. Overview for 21.02.2023

EURUSD got stressed out again. The current quote is 1.0660.

As there was no news or important events while the macroeconomic calendar was empty and the US market was shut down yesterday, investors turned to the Federal Reserve System policy again.

The main idea is that the Fed will have to remain carnivorous because it has been a couple of weeks that inflation is giving signals about speeding up.

The US interest rate is expected to reach the high of 5.30% in July and remain above 5.00% for the remainder of 2023.

And indeed, the risk of tight monetary policy preserves. More information will be provided in the minutes of the latest Fed’s meeting that are scheduled on Wednesday.

Today the market will be focused on the prelim PMA in services and production of the Euro zone and separate countries in February. In certain countries, it might demonstrate growth, which will support the EUR.