The primary currency pair is rebounding on Thursday. The current EURUSD exchange rate stands at 1.0674.
The US dollar lost some strength as the market grew tired of worrying about shifting expectations of interest rate cuts from the Federal Reserve. Investors already know that the Federal Reserve's current monetary policy settings will remain restrictive for some time. It is high time the EURUSD normalised.
The US dollar has recently surged as the released macroeconomic statistics confirmed the robust performance of the US economy, reducing the likelihood of an interest rate reduction in June. Additionally, the US dollar has been in demand as a safe-haven asset while the Middle East is experiencing heightened tensions.
Risk appetite is now recovering, and this is becoming more evident with the agreement among the US, Japan, and South Korea to consult on currency market issues.
Today, the market awaits weekly data on jobless claims in the US and the March report on existing home sales.