The main currency pair paused its ascent on Thursday. The current EURUSD exchange rate stands at 1.0705.
Nothing significant happened; the market remains highly sensitive to even the slightest changes in global sentiment.
Today, the US will release the GDP statistics for Q1 2024. The economy is expected to grow by 2.5% compared to the previous 3.4%. A local slowdown in economic growth at the beginning of the year may be a normal response to some dip in activity. However, the GDP is forecasted to gain dynamics later on.
The market believes the US dollar is emerging as the most effective currency this year. Simultaneously, the fundamental performance of the US economic system compared to other countries suggests that USD could continue rising against other currencies.
The US dollar is supported by rising US government spending and high demand for the safe-haven asset. Moreover, the deflationary effect of China's economic decline buoys the USD.