The US dollar was exhibiting a decline today, amid uncertainty and limited performances over the past five days as markets awaited this week’s economic data releases.
Traders could focus on PMI data today as well as GDP growth, PCE, and job market data during the remainder of the week. The data releases could affect the dollar’s path and could fuel volatility as traders continue to gauge the potential for interest rate cuts in the coming Federal Reserve meetings.
The euro strengthened today against the dollar and reacted to the release of PMI data, which indicated a moderating economic downturn at the start of this year.
Market attention is now focused on tomorrow’s highly anticipated European Central Bank (ECB) meeting. However, the euro may face significant volatility due to the uncertainty surrounding the ECB’s next steps and the lingering risk of further economic deterioration.
The British pound was also experiencing some gains, buoyed by PMI results that pointed to improving economic output. The latter fueled speculation that the Bank of England (BOE) might maintain high interest rates for an extended period, which could help the pound to rise.
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