The dollar dropped versus a group of significant competitors in European trade on Thursday, continuing its decline and plunging to two-week lows as risk appetite increased and demand decreased.
Markets are currently awaiting significant US growth data for the first quarter of the year, which is expected to provide insight into the likely direction of US interest rates going forward.
The Cost
With a session high of 105.84, the dollar index dropped 0.25% today to 105.57, its lowest level in the last two weeks.
The dollar reached 34-year highs versus the yen on Wednesday, and the index ended the day 0.15% higher.
Alternative Financial Positions
Demand for dollars fell as risk appetite increased, particularly when geopolitical tensions between Israel and Iran subsided.
In order to assess the state of the economy, investors are currently awaiting significant earnings reports from banks and other enterprises.
US Exchange Rates
Markets are factoring in a 13% chance of a June Fed interest rate cut and a 45% chance of one in July.
US Growth Information
Data on US GDP growth are expected later today, with the first quarter growth predicted at 2.5%, compared to 3.4% in the fourth quarter of 2023.
In the week ending April 20, US unemployment claims are predicted to reach 214 thousand, up from 212 thousand in the previous estimate.
