Now: Greenback still driven by Inflation

The US Dollar is still largely affected by the current inflation rate as the central bank (The Fed) is trying their best to curb the high inflation that is starting to jeopardize the stability of economic growth. The latest update on the policy by Fed is taken from US Fed Cleveland President, Loretta Mester, who in her statement mentioned that 75 basis points interest rate hike is still on the table and always an option if necessary. Although she adds afterward that the current pace of hike is on the right track.

The Euro on the other hand is still affected by the tension between Russia and the current progress on the Russo-Ukraine war. On the other hand, the current German economy also became the major mover for the Euro as people are anticipating a further deterioration on the current economic growth from the ZEW survey.