EUR/USD Remains Stable Ahead of Crucial US Federal Reserve Meeting.

The major currency pair remains balanced on Tuesday, with the current EUR/USD exchange rate at 1.1080.

Yesterday's released statistics revealed a mixed performance in the Eurozone. The preliminary PMI in the services sector for July decreased to 51.1 points from the previous 52.0 points, while in the manufacturing sector, the indicator dropped to 42.7 points from 43.4 points previously. Businesses are facing challenges due to high-interest rates and equally high inflation.

The US also released similar data. Business activity in the manufacturing segment from Markit improved to 49.0 points from the previous 46.3 points. While this is a positive result, the indicator still remains below the psychologically critical level of 50 points, signaling a contraction rather than growth. In the services sector, the indicator decreased to 52.4 points from 54.4 points previously.

In summary, businesses in both the Eurozone and the US are experiencing difficulties, leading to reduced support for their respective economies.

Market participants are closely focused on the US Federal Reserve meeting, which is scheduled to start today and conclude on Wednesday with a decision on the interest rate. Market expectations suggest a 25-basis-point rise, bringing the rate to 5.5% per annum.

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