Ella 
In early Asian trading on Monday, EUR/USD was weak and was below the 1.0900 mark. The U.S. dollar (USD) rebounded above 103.50, weighing on EUR/USD. Investors are awaiting Wednesday’s interest rate decision from the U.S. Federal Open Market Committee (FOMC), with no change expected. As of press time, EUR/USD was trading at 1.0885, down 0.03% on the day.
The University of Michigan’s March consumer confidence index fell to 76.5 on Friday, down from the previous reading and the expected reading of 76.9. The University of Michigan’s one-year and five-year inflation expectations were unchanged at 3.0% and 2.9%, respectively. At the same time, the monthly rate of U.S. industrial production climbed to 0.1% in February from -0.5% in January.
The Fed is widely expected to hold the key federal funds rate steady at 5.25%-5.50% on Wednesday as Fed officials want to see more evidence of inflation data before initiating rate cuts to ensure they return to their 2% target. high level in recent years. That said, talk of higher U.S. interest rates for longer could boost the U.S. dollar (USD) and weigh on EUR/USD.
In the euro, the European Central Bank (ECB) kept borrowing costs at record highs at its March meeting, but policymakers said they were discussing a first rate cut. ECB policymaker Pablo Hernández de Cos said on Sunday the central bank would keep borrowing costs at record highs this month but said it was making good progress in lowering inflation and had started to discuss monetary easing. Initial discussions on policy. He added that the central bank could start cutting interest rates in June after euro zone inflation fell.
The Eurozone Harmonized Index of Consumer Prices (HICP) and the trade balance will be released on Monday. ZEW surveys for Germany and the euro zone will be published on Tuesday. Focus turns to the Federal Reserve’s interest rate decision to be announced on Thursday. Traders will look for opportunities to trade EUR/USD from this data.
