The US Dollar remained under pressure, hitting a new low this year.
On Friday, disappointing Michigan Consumer Sentiment data and mixed PMI figures heightened speculation that the Federal Reserve could move toward a rate cut in June, weighing down the greenback.
However, persistent inflation could add to the complexity and paint a clouded outlook for the US dollar.
Meanwhile, the Euro strengthened in the aftermath of Germany’s recent general election, where conservative leader Friedrich Merz is expected to form a coalition government, which has bolstered investor confidence in the region’s economic outlook.
Looking forward, investor’s attention now shifts to key economic releases including the US 2024 Q4 GDP growth rate and Core PCE. Strong data should provide support for the US dollar, while any negative surprise may increase selling pressure.
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