The uses dot-plot reporting or member interest rate estimates to guide the market. The DotPlat report, released last week, showed two phases of interest rate hikes by the end of 2023. In contrast, the European continues to pursue expansionary , not only in terms of raising interest rates, but also in reducing bond purchases. Even a senior economist at the European has stressed that it is too early to talk about stopping the from buying bonds.
In the long run, the divergence between the of the and the European is to the detriment of the EURUSD . data will be in the spotlight next week. If grows faster than forecast, the Fed will pull out of expansionary sooner than previously forecast. Relatively important economic data from the euro area will be released this week. The PMI, the German business climate and the Consumer and Investor Confidence Index could affect short-term fluctuations in the euro .