Euro hovers around 1.1000 with no clear bias in the near term EUR EURUSD $EUR $EURUSD
on. Financial markets were generally optimistic throughout the first half of the day amid hopes for an end to the Russian attacks on Ukraine. Leaders from both sides commented on a possible diplomatic resolution, although hopes cooled mid-US session, as Kyiv rejected Moscow's proposed neutrality.
The pair turned south with the US Federal Reserve monetary policy decision. As expected, the central bank hiked rates by 25 bps. However, the dot-plot now indicates six rate hikes for the year, while Fed officials see Fed Funds rate at a median of 2.8% at the end of 2024. The central bank also announced that it would start reducing its balance sheet in the upcoming meeting.
Earlier in the day, the US published February Retail Sales, which were up a modest 0.3%, missing the 0.4% expected. On Thursday, the EU will publish the final readings of February inflation data, expected to be confirmed at 5.8% YoY. The US will offer employment and housing-related data, alongside February Industrial Production and Capacity Utilization.has advanced for a third consecutive day, posting a second consecutive higher high, which somehow skews the risk to the upside.