EUR/USD: Fed's day, no changes on the table but Chair Powell could give the signal for the first cut

The single European currency continues to defend the 1,08 level which was challenged several times during the day yesterday and although some prices were marginally marked slightly below it, the euro still holds levels above it.

Yesterday's rich agenda did not give any big surprise and although some announcements had a slight deviation from estimates in general the data were mixed on both sides of the Atlantic without significantly affecting the exchange rate.

The prospect of a cut in key interest rates from Fed and ECB continues to be the main catalyst that is set to influence the path of the exchange rate in the near future.

Bets remain unchanged which are centered around the possibility of two rate cuts by both main Ccentral Banks but today's Fed meeting and especially the President's Jerome Poweell speech is likely to feed the markets with new data and bets could change.

Without any major surprise the US dollar could maintain a slight lead against the European currency as the interest rate differential in favor of the dollar remains on the table and the gap is difficult to close in the coming months.

But in any case the European currency recalls relatively often its ability to react which it maintains in the game with very good fidelity.

Today's very rich agenda in addition to the Fed meeting and  President Powell speech which is sure will monopolize the interest,  also fills from several interesting macroeconomic data such as consumer inflation in the eurozone area and the next preliminary data on the labor sector in the United States.

I remain on hold giving slightly higher odds that the 1,08 level will eventually break down.