The value of EUR has experienced a rise, particularly in relation to USD, as investors focus on monetary policy.
The stability of the primary currency pair was evident on Monday, with EUR/USD exhibiting a slight strengthening at the current quote of 1.0910.
Recent data indicates that the Core Personal Consumption Expenditure (Core PCE) price index in the United States grew by 0.3% month-on-month in June, surpassing the forecasted 0.2% increase but falling short of the previous 0.4% rise. On an annual basis, the index has seen a 4.5% increase.
This data reflects the slowest growth rate since July of the previous year, which can be considered positive news. The Federal Reserve closely monitors this index while compiling inflation statistics.
The Fed pays particular attention to segments of the consumer basket that display significant fluctuations, primarily within the service sector. The prevailing belief is that rising prices in this sector can support inflation growth as long as the labor market remains strong. However, the Fed has observed limited price progress in non-real estate services.
The market's focus this week will be on the release of the minutes from the previous Fed meeting, held two weeks ago, during which the decision was made to pause the series of rate hikes. Investors will eagerly await insights into the rationale behind this decision, as well as indications of the Central Bank's future actions. Currently, the prevailing market sentiment suggests a 25 basis points rate hike at the July meeting.