The primary currency pair looks relatively weak on Thursday. The current exchange rate for EURUSD is 1.0792.
Yesterday, a substantial rise in US government bond yields significantly impacted the US dollar, pulling it up and causing a dramatic shift in sentiment in the currency market and a subsequent decrease in risk appetite.
Expectations for a Federal Reserve interest rate cut this year have decreased amid signs of persistent inflation. According to the CME FedWatch monitor, the likelihood of a rate cut at the September meeting is estimated at 56.6%, down from 57.5% a week earlier. However, there is much discussion in the market that the rate cut might occur in November instead of September, which is essential to bear in mind.
The Fed itself has not provided any additional comments on this matter.
The release of revised US GDP statistics for Q1 today is expected to be a significant event, potentially leading to increased volatility.