Today there are important data that the market is analyzing, such as the European Central Bank meeting and the US GDP data, which could provide clues about the future of interest rates in those latitudes.
He euro is trading just above the six-week lows reached earlier in the week versus to the dollarwaiting for the meeting of the European Central Bank (ECB) and the US Gross Domestic Product (GDP) data that could offer indications about the future path of interest rates.
The common currency gained 0.12%, settling at $1.0899, close to the $1.0822 it hit on Tuesday, its lowest level since mid-December.
The movements are moderate in the sessionas traders have several events to react to throughout the day.
Euro vs. dollar: the data analyzed by the market
First of all, The ECB announces its latest policy decision this Thursday. Although she is expected to keep rates unchanged, the focus is on herself, President Christine Lagarde firmly combats market bets on rate cuts as soon as April in her press conference.
“President Lagarde sends a clear message about the possible timing of the ECB’s first rate cut when she states that they plan to cut rates in the summer. We hope that this message will be repeated at today’s monetary policy meeting,” he says in a note to his clients Lee Hardman, of MUFG.
Then the first reading of the US Gross Domestic Product (GDP) for the fourth quarter will be known. According to a Reuters pollan annualized growth of 2% is expected, although estimates range between 0.8% and 2.8%, a notable slowdown compared to 4.9% in July-September.
The dollar index has risen about 2% this month as traders have sharply reduced bets on an early and deep rate cut by the Federal Reserve, after the rejection of central bankers and a series of data that underlines the resistance of the US economy.
On the other hand, the pound sterling is stable at 1.2732 dollars and the yen weakens slightly and is trading at 147.68 units per dollar.
Source: Ambito
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