Dollar fell in European trade on Thursday against a basket of major rivals, resuming losses and plumbing two-week lows as demand slowed down and risk appetite rebounded.
Now markets await important US growth data later today for the first quarter of the year, which will help determine the likely path ahead for US interest rates.
The Price
The dollar index fell 0.25% today to 105.57, the lowest in two weeks, with a session-high at 105.84.
The index closed Wednesday 0.15% higher as the dollar scaled 34 year highs against yen.
Alternative Investments
Dollar demand declined as risk appetite rebounded, especially as geopolitical tensions between Iran and Israel faded.
Now investors await important earnings results from major corporations and banks to gauge the health of the economy.
US Rates
The markets are pricing in a 13% probability of a Fed interest rate cut in June, and a 45% probability of such a cut in July.
US Growth Data
Later today, US GDP growth data are estimated at 2.5% in the first quarter, down from 3.4% in the fourth quarter of 2023.
US unemployment claims are expected up to 214 thousand in the week ending April 20, from 212 thousand in the previous reading.
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