EURUSD trading around 1.0940, varied reactions to the Fed’s rate

EURUSD is trading in a non-directional manner as traders debate the Fed’s future interest rate policy.

EURUSD pair is bouncing in a narrow range around 1.0940. The major currency pair is exhibiting a non-directional performance as the market is divided. On the Federal Reserve’s (Fed) future interest rate policy roadmap.

S&P500 futures are down slightly as investors remain cautious due to an extended weekend in the United States.

The S&P 500 futures are down slightly in the Asian session, as investors remain cautious. Due to the extended weekend in the United States. The markets in the United States are closed. on Monday to commemorate Juneteenth.

The US Dollar Index (DXY) is also trading sideways. As investors are divided regarding the Fed’s future policy rate forecasts. Last week, Fed Chair Jerome Powell left interest rates unchanged. But provided hawkish advice, stating that two minor rate hikes are appropriate.

Given the US economic forecast and lowering US consumer inflation expectations. The CME Fed watch tool predicts that the Fed will only announce one rate hike this year. On Friday, preliminary five-year consumer inflation predictions were lowered to 3% from 3.0% in the last report and projections. While current consumer and producer inflation has slowed significantly as a result of decreasing petrol costs.

Despite difficulties to Eurozone economy, the ECB raised interest rates by 25 basis points to 4%.

Aside from that, the US labor market Firms are under pressure from increasing interest rates and stringent credit terms imposed by US regional banks, therefore conditions have deteriorated dramatically.

Furthermore in the Eurozone, the European Central Bank (ECB) raised interest rates yet again, bringing them to 4%. ECB President Christine Lagarde decided not to take the bullet for the Eurozone’s gloomy economic prospects, instead fighting persistent inflation.