(AOF) – The European currency begins a week marked by the Fed’s monetary policy decision on Wednesday evening. It lost 0.45% to 1.0804 dollars, its lowest level since mid-December 2023 and the decision of the American Central Bank. The US rates market currently puts the probability of a first rate cut of 25 basis points in March at 50/50.
“With the US rates market finely balanced against the prospect of an earlier start to the Fed’s rate cut cycle, this week’s Fed Monetary Policy Committee meeting could prove pivotal for the performance of the US dollar in the short term,” warns MUFG.
For La Française AM, the Fed president will leave the door open to a potential cut in interest rates in March, depending on the data. “Nevertheless, it will remain cautious on the scale of reductions in 2024 by reaffirming the 75 basis point rate cut, as planned in the December 2023 projections.”
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