2024-01-26T05:00:19+00:00
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/ The dollar held steady on Friday after rising overnight, as traders were assessing the extent to which local GDP data that surprised the upward trend would impact the Federal Reserve’s interest rate path and awaited key inflation data later today.
Meanwhile, the euro was in decline after the European Central Bank’s latest monetary policy meeting on Thursday kept interest rates at a record 4%, according to Reuters.
In the United States, official data on advanced GDP estimates showed that GDP in the fourth quarter rose at an annual rate of 3.3%, exceeding consensus expectations for a growth rate of 2%. It also showed a further decline in inflationary pressures.
The dollar index, which measures the US currency against a basket of major currencies, ranged around 103.52 after rising about 0.2% overnight. It has gained about 2% so far this year.
Treasury yields fell, with the benchmark 10-year yield falling to 4.11% in the Asian morning.
Markets are betting there is a 50% chance of a rate cut in March, according to the CME FedWatch tool, down from 75.6% a month ago.
The euro was last trading at $1.0841 after falling to its lowest level in six weeks at $1.08215 on Thursday.