The major currency pair was compelled to retreat by Friday. The current EURUSD quote is 1.0870.
The focus the day before was primarily on the final US GDP report for the first quarter of 2023, which exceeded expectations. The US economy expanded by 2.0% from January to March, surpassing the previous growth estimate of 1.3% and a projected increase of 1.4%.
The components of the report reveal that the main drivers of economic growth were increased exports, consumer spending, municipal, and government expenditures, and business investments. Consumer spending, which accounts for approximately two-thirds of the economy, increased by 4.2% in the first quarter, exceeding the initial estimate of 3.8%. This means that the economy continued to grow driven by consumer activity, although recent signals show a slowdown in such activity lately.
Fresh employment market statistics confirmed the strength of the labour sector and added to the reasons for future interest rate hikes by the Federal Reserve. The number of initial jobless claims for the week decreased to 239 thousand from 265 thousand previously.
Today will be an eventful day. The Eurozone will release preliminary inflation statistics for June, as well as May data on the labour market. The US is to publish personal income and expenditure parameters for Americans in May and the final value of the Consumer Sentiment Index from the University of Michigan for June.