Currency Markets Steady Amid U.S. Economic Signals
The dollar held steady against the euro and sterling amid better-than-expected U.S. economic growth data, affecting expectations on the Federal Reserve's rate-cut plans. New U.S. tariffs had limited impact on currency markets. Attention turns to consumer spending data for potential economic insights.
The dollar remained stable against the euro and sterling on Friday, buoyed by strong U.S. growth figures that tempered expectations for further Federal Reserve easing this year. The euro neared a three-week low at $1.1667, while sterling stayed at $1.3351 after hitting a near two-month low on Thursday.
In Europe, major pharmaceutical companies saw steady shares despite an early dip. Analysts noted that exemptions for firms relocating manufacturing to the U.S. eased concerns of market impact. Nick Rees of Monex Europe highlighted that markets viewed new U.S. tariff announcements as negotiating tactics by the White House.
Markets are now focused on U.S. consumer spending and PCE inflation data for signs of urgent economic intervention from the Fed. The likelihood of the Fed maintaining current rates next month increased slightly, reflecting robust growth data released earlier.
(With inputs from agencies.)
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