Ella 
On Thursday, the EUR/USD continued to fall for the third consecutive trading day, with the Asian market once falling to around 1.0820. However, the dollar maintained tepid momentum ahead of the release of the U.S. fourth-quarter 2023 annual gross domestic product rate. In addition, traders may focus on the February US PCE price index.
The U.S. dollar index is hovering around 104.30, retreating from March highs. U.S. Treasury yields recovered from the previous two sessions’ losses, which may provide support for the dollar.
Market participants are awaiting new guidance from the Federal Reserve on its interest rate trajectory. However, differences in opinions among Fed members on monetary policy easing caused market confusion.
Federal Reserve Governor Christopher Waller maintained his stance on “no rush” to cut interest rates, citing persistent inflation data. Atlanta Fed President Raphael Bostic expressed a similar view, predicting only one rate cut this year and warning against cutting rates too early to avoid exacerbating economic chaos.
The euro is under downward pressure as European Central Bank (ECB) officials increasingly hint at a potential rate cut in June. Giannis Stumaras said on Tuesday that a consensus was gradually forming within the European Central Bank to cut interest rates in June, and Mattis Muller also held the same view, suggesting that the European Central Bank was close to a point suitable for cutting interest rates.
German retail sales data for February will be released on Thursday. German retail sales are expected to be -0.8% annualized in February. Retail sales likely rose 0.3% on an annual basis in February, up from -0.4% previously.
