Ella 
EUR/USD fluctuated sharply on Thursday, with the Asian market fluctuating around 1.0730 in early trading on Friday. The intraday trend was back-and-forth, with mixed US data dampening hopes for an interest rate cut.
On Thursday, U.S. gross domestic product (GDP) growth slowed more than expected, with annualized growth slowing to 1.6% in the first quarter from 3.4% previously, well below expectations of 2.5%. Slowing growth is good news for investors who want the Federal Reserve to cut interest rates more quickly, but cutting rates too quickly and too much could have negative ripple effects throughout the U.S. economy.
U.S. personal consumption expenditures (PCE) inflation accelerated again in the first quarter, with PCE rising 3.4% in the first quarter compared with 1.7% in the previous quarter, further dampening hopes for a rate cut. Remaining high inflation dampened hopes for a rate cut, keeping risk appetite subdued during the U.S. trading session before a firm but limited recovery.
European data on Friday will be mostly lower, with markets turning to U.S. PCE price index data for March as investors look for more fine-tuning of the U.S. inflation outlook. The core monthly PCE price index in March is expected to hold steady at 0.3%, with annual growth expected to edge back slightly to 2.6% from 2.8%.
