On the data front, the US economy accelerated at a 5.2% annualized pace in the third quarter
The US dollar bounce slightly on Wednesday after finding support just below the 102.50 figure earlier in the day. As such, the greenback saw fresh August lows as the overall pressure continued to persist.
The USD index struggles to shrug this month’s selling pressure amid rising expectations for an earlier rate cut by the Fed. By the way, interest-rate futures indicated last week a nearly 60% chance the US central bank will lower rates by 25 basis points by May 2024 even as Fed officials have consistently said that they aren’t close to discussing rate cuts.
On the data front, the US economy accelerated at a 5.2% annualized pace in the third quarter, topping the initial 4.9% reading and exceeding the forecast of a 5% growth. The upward revision came from increases in nonresidential fixed investment.
After finding support around the mentioned lows, the USD erased intraday losses, holding onto gains on Thursday. Still, the US currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off. The DXY is oscillating around 103.00 in early European deals, looking modestly upbeat, with risk sentiment mixed in the global financial markets.
Against this backdrop, EURUSD came off local highs to turn negative during the previous session after an earlier ascent to the 1.1016 zone that capped gains. The pair is changing hands around 1.0925 on Thursday, seeing solid intraday losses amid dollar’s recovery. In the immediate term, the euro needs to hold above 1.0900 in order to stay afloat. The shared currency also slipped amid disappointing regional data as French economy contracted in the third quarter.