EURUSD reversed downwards. Overview for 22.03.2024

The primary currency pair is under pressure on Friday. The current EURUSD exchange rate stands at 1.0835.

Sentiment towards the US dollar turned more positive after the market reassessed current exchange risks.

The Swiss National Bank unexpectedly lowered the interest rate yesterday, as it considered inflation in the country under control. Market participants are confident that other central banks worldwide will soon come to similar decisions.

This week, the US Federal Reserve kept the interest rate unchanged at 5.5% per annum. In its commentary, the Fed noted that the overall inflation picture reflects a gradual easing of price pressures, regardless of the recently high inflation levels. The Federal Reserve expects economic growth in 2024 to be stronger than previously forecasted.

Currently, US yields remain among the highest in the bloc of developed countries, which supports the US dollar.