| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 10:00 | Eurozone | Harmonized CPI | February | -0.4% | 0.6% | 0.6% |
| 10:00 | Eurozone | Harmonized CPI, Y/Y | February | 2.8% | 2.6% | 2.6% |
| 10:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | February | 3.3% | 3.1% | 3.1% |
USD decreased slightly against most of its major counterparts in the European session on Monday as investors braced for the Federal Reserve interest-rate decision later this week.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, slipped 0.08% from the previous close to 103.35.
While no rate change is expected from the U.S. central bank when it unveils the outcomes of its March meeting on Wednesday, markets will pay attention to the policymakers’ updated projections on the economy and interest rates. Some economists suggest that the Fed’s dot-plot forecasts may signal fewer rate cuts than previously indicated amid renewed inflation risks. In December 2023, the rate-setters foresaw three rate decreases for 2024.
Changes in economic and rate-cut projections could prompt markets to revise their expectations that the first rate reduction will come in June.
Apart from the Fed, rate decisions are also on tap from the Bank of Japan (on Tuesday), Reserve Bank of Australia (on Tuesday), Swiss National Bank (on Thursday), Norges Bank (on Thursday) and Bank of England (on Thursday).