- EUR/USD remains below 1.0900 ahead of ECB interest rate policy decision.
- The DXY Dollar Index consolidates near 103.30 ahead of US GDP data.
- A slowdown in US GDP in the fourth quarter would ease the inflation outlook.
The pair EUR/USD trading slightly below the 1.0900 resistance level during Thursday's European session. The pair is expected to remain in suspense pending multiple economic indicators.
S&P500 futures have posted some gains during the European session, reflecting some recovery in risk appetite among market participants. The US Dollar Index DXY remains in a tight range around 103.30 as investors await US Q4 Gross Domestic Product (GDP) data, due at 13:30 GMT.
Investors have anticipated that the US economy expanded 2.0%a slower growth rate than the 4.9% in the third quarter of 2023. It would be the lowest growth rate since the second quarter of 2022. A slowdown in the pace of growth would ease consumers' inflation expectations and boost inflation. hopes for an interest rate cut by the Federal Reserve (Fed) in March.
In addition to the US GDP data, market participants will focus on December core Personal Consumption Expenditure (PCE) price index data, due to be released on Friday.
In the Eurozone, investors await the decision of the European Central Bank (ECB) on interest rates, which will be announced at 13:15 GMT. The ECB is expected to keep the main refinancing operations rate unchanged at 4.5%. Last week, ECB President Christine Lagarde commented that the central bank could begin reducing interest rates as early as the end of summer. Lagarde warned that inflation is very far from what the ECB wants.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
