Ella 
Affected by the Fed’s hawkish market sentiment and long-term interest rate hike expectations, the US dollar strengthened and EUR/USD extended its decline for the fourth consecutive day. This shift in sentiment has been supported by strong recent U.S. economic data. On Friday in Asia, EUR/USD fell to around 1.0780.
The U.S. dollar index strengthened, near 104.60, largely driven by hawkish comments from Federal Reserve officials, which boosted the greenback. In a speech on Wednesday, Federal Reserve Governor Christopher Waller hinted at a possible delay in cutting interest rates in light of strong inflation data. Investors are now awaiting Friday’s U.S. PCE price index for more signals and guidance.
In the fourth quarter of 2023, the U.S. gross domestic product (GDP) grew at an annual rate of 3.4%, exceeding market expectations of 3.2%. The U.S. gross domestic product price index remained steady, rising 1.7%, in line with fourth-quarter expectations.
During the same period, U.S. core personal consumption expenditures came in at 2.0% quarterly, slightly below expectations and the previous reading of 2.1%. In addition, the number of people filing for unemployment benefits in the United States fell to 210,000 last week in the week ended March 22, compared with the expected value of 212,000 and the previous value of 215,000.
