The euro was again trading well above $1.07 on Thursday in anticipation of two important macro figures from the US, which are of great interest to the market as they appear to fuel interest rate sentiment.
“We think the market’s reaction to the disappointing US PMI is rather exaggerated,” currency trader Stéphane van der Meer of currency broker Ebury told ABM Financial News on Thursday. “The Fed has clearly indicated that it is closely monitoring macro data and that it wants to be repeatedly confirmed in the justified case for an interest rate cut, otherwise it will not go ahead. It is surprising that one figure will push the dollar down, because this could be a signal for an interest rate cut in June. We think that the dollar will show a recovery, causing the euro to fall below 1.07 dollars again,” said Van der Meer.
The most anticipated figure in the market today concerns the growth of the US economy. A growth rate of 2.4 percent is expected. In the fourth quarter of 2023, growth was 3.2 percent.
The PCE inflation for March will follow on Friday, by far the most important figure of the week, as this is the Fed’s guideline for interest rate policy.
The euro was 0.3 percent higher on Thursday at 1.727 dollars. The European currency was 0.2 percent lower at 0.8567 British pounds. The British pound rose 0.5 percent to 1.2521 dollars.
