EUR/USD is in a consolidation phase ahead of the Federal Reserve meeting.
The primary currency pair is exhibiting stability on Tuesday. The current exchange rate for EUR/USD is at 1.0680.
Since the European Central Bank's meeting, the euro's exchange rate has been attempting to recover, albeit without significant success. In reality, the euro has sustained a weak position for nine weeks, with the euro/dollar pair experiencing a nearly 5% drop over the last three months.
Market sentiment leans towards the belief that the ECB is unlikely to raise the interest rate above 4%. This is attributed to the weakening state of the eurozone's economy, with the ominous possibility of an upcoming recession.
A pivotal two-day session of the US Federal Reserve commences today. It's a crucial period as the meeting will conclude on Wednesday with a decision regarding the interest rate. It is expected that the rate will remain unchanged at 5.5% per annum. However, the market is keen on the insights provided in the subsequent comments, which will illuminate the regulator's prospective actions.
The market might experience heightened nervousness until the interest rate decision is revealed, accompanied by a speech from Jerome Powell, the Chair of the Fed.