2024-01-26T05:00:19+00:00
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/ The dollar held steady on Friday after rising overnight, as traders assessed how surprising U.S. GDP data would impact the Federal Reserve’s interest rate path and awaited key inflation data later in the day.
Meanwhile, the euro was on the decline after the European Central Bank’s latest monetary policy meeting on Thursday, which kept interest rates at a record low of 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%, beating consensus expectations for a 2% growth rate. It also showed inflationary pressures easing further.
The dollar index, which measures the greenback against a basket of major currencies, was trading 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 a six-week low of $1.08215 on Thursday.