The euro is expected of today’s monetary views of the Federal Reserve system, which is Wednesday night, with an interest rate decision comes out, and the new expectations and the so-called dot plot, to publish it.
In the run-up to this, the market is not so nervous yet, but we expect a strong dollar on Wednesday. In the previous dot plot, there were two voting Fed directors who were in favour of a rate increase for 2024 and we do not think this number has diminished. That will support the dollar, so is our expectation.
Euro may fall below $ 1.21 from Wednesday to Thursday if the scenario will be confirmed.
Macroeconomic data from the United States, followed by industrial production for the same month will be market movers. Retail sales are expected to decline by 0.6 percent on a monthly basis, while production is expected to decline by 0.6 percent on a monthly basis.
The British pound dollar exchange rate, which comes under pressure again, as the British decided to postpone the easing of the coronavirus measures. Tomorrow we will have the necessary macroeconomic data from the United Kingdom, and we think that could be an indication of a recovery of the British pound.
The president of the United States Joe Biden will talk today with the president of the European Commission Ursula von der Leyen and the president of the European Council Charles Michel.
On Tuesday, the euro rose by 0.1 percent at $ 1.2131. The European currency recorded 0.3 percent higher at £0.8611. The British pound fell 0.2 percent on Tuesday and stood at 1,4089 dollars. The dollar recorded 0.1 percent higher at 6,4024 Chinese yuan. The dollar today was flat at 110,1055 yen.