Economy News – Baghdad
The U.S. dollar is poised for a robust performance against the euro as early trading on Thursday commences, contingent on the European Central Bank’s potential shift towards a cautious stance on interest rates. This follows the Federal Reserve’s recent decision to maintain current interest rates.
Market analysts anticipate that the European Central Bank will opt to lower interest rates by 25 basis points to 2.75 percent later on Thursday.
“The intricate economic and political challenges confronting the largest eurozone economies significantly increase the pressure on the European Central Bank to foster growth,” noted analysts from ZND.
The euro stabilized at an exchange rate of $1.0425, having previously dipped to $1.0380.
Meanwhile, the dollar experienced a slight decline against the yen, trading at 155.01 yen, and fell against a basket of currencies, with a recorded drop to 107.880.
Jerome Powell, the Chairman of the Federal Reserve, remarked that there has been notable progress, stating that prices are “concretely” above the target point, indicating considerable leeway for further interest rate reductions.
Later on Thursday, U.S. GDP data is expected to show a modest annual growth decline to 2.6 percent for the fourth quarter, with forecasts varying between 1.7 percent and 3.2 percent.
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