(ABM FN-Dow Jones) The euro traded well above $1.07 again 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 after 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 that there is a valid reason for an interest rate cut, otherwise it will not go ahead. That one figure will then bring the dollar down, because this could be a signal for An interest rate cut in June is surprising. 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.
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Source: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
