EUR Experiences a Downfall: Overview for September 15, 2023

<div><img width="360" height="360" src="https://blog.roboforex.com/wp-content/uploads/2023/06/EURUSD_17-360×360.jpg" class="attachment-thumbnail size-thumbnail wp-post-image" alt="EUR/USD analysis today" decoding="async" style="margin-bottom: 15px;" loading="lazy" /></div><p>The <a href="https://roboforex.com/beginners/info/charts/forex/eurusd/" data-internallinksmanager029f6b8e52c="35" title="EUR/USD">EUR/USD</a> pair plunges following an ECB meeting.</p>

<p>The primary <a href="https://blog.roboforex.com/blog/2020/06/19/how-to-choose-a-currency-pair-for-trading-in-forex/" data-internallinksmanager029f6b8e52c="142" title="Currency Pair">currency pair</a> remains in a weakened state this Friday. The current exchange rate for EUR/USD is at 1.0649.</p>

<p>The prominent currency pair faced significant pressure yesterday. This transpired after the European Central Bank conducted a meeting and decided to increase the <a href="https://blog.roboforex.com/blog/2019/10/22/trading-news-how-to-earn-on-interest-rates/" data-internallinksmanager029f6b8e52c="90" title="Interest rate">interest rate</a> by 25 basis points, bringing it to 4.5% per annum. The EUR would have potentially weathered this decision fairly well if not for the comments made by the regulator during the meeting.</p>

<p>The ECB stated that the interest rate had reached a level deemed sufficient in the long run to maintain control over <a href="https://blog.roboforex.com/blog/2022/06/30/what-is-inflation-reasons-and-consequences/" data-internallinksmanager029f6b8e52c="220" title="Inflation">inflation</a>. This suggests the regulator is prepared for a monetary pause, fortifying its position to keep borrowing costs high for as long as needed. The targeted inflation rate remains at 2%.</p>

<p>The market responded with substantial selling pressure. In the initial hours after the decision, the EUR/USD pair plummeted significantly, attempting to stabilize afterwards.</p>

<p>Given this backdrop, US statistics scarcely grabbed attention. The Producer Price Index (<a href="https://blog.roboforex.com/blog/2021/09/24/what-is-ppi-and-how-to-use-it/" data-internallinksmanager029f6b8e52c="202" title="PPI">PPI</a>) in August surged by 1.6% year-on-year, compared to the previous 0.8% year-on-year. Retail sales in August witnessed a 0.6% month-on-month increase, surpassing economists' expectations of 0.2% month-on-month. These <a href="https://blog.roboforex.com/blog/2019/11/19/top-10-forex-indicators-that-every-trader-needs/" data-internallinksmanager029f6b8e52c="99" title="Indicators">indicators</a> all signal towards inflation, which raises concerns ahead of the Federal Reserve&rsquo;s meeting scheduled for the following week.</p>

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