The primary currency pair demonstrates a modest increase on Friday. The current EURUSD exchange rate stands at 1.0722.
The market is uncertain whether the US Federal Reserve has all the necessary arguments to lower the interest rate in the near future. Yesterday's weak US GDP release for Q1 2024 could have been a reason to soften the monetary policy if the Fed were prepared to act.
The US economy increased by only 1.6% in January-March, contrary to the expected rise of 2.5%. In Q4 last year, the GDP demonstrated a 3.4% increase.
Meanwhile, consumer demand remains high. This factor limits the Fed's actions, compelling it to await a more opportune moment to lower the rate.
Today, the macroeconomic calendar is packed with statistics. The focus is on the March Core PCE inflationary component and reports on Americans' income and spending for the previous month.
