The EUR/USD pair has hit the pause button, anticipating crucial updates.

This Tuesday finds the primary currency pair in a state of stillness, with the current EUR/USD exchange rate holding steady at 1.0765.

The spotlight turns to the commencement of the two-day Federal Reserve System meeting. The interest rate decision is expected to maintain neutrality, keeping the rate steady at 5.50% per annum. Yet, all eyes are on the Fed's forward-looking comments: the how, when, and under what conditions of potential borrowing cost reductions.

Fresh data on US inflation for November is due on Tuesday, with a forecast of zero in month-to-month comparison. On an annual basis, it's expected to dip to 3.1% from the previous 3.2%.

Thursday brings the European Central Bank's meeting. While rate hikes are on hold, investors anticipate potential future reductions. The current ECB rates are 4.50% annually, with a deposit rate of 4.00%. The ECB is following through with its planned balance reduction. The European regulator maintains its inflation target at 2%, carefully monitoring price trends. General calculations suggest that, by mid-2024, price pressures could align with current levels.

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