EUR/USD faced a decline as risk appetite diminished.
The major currency pair was compelled to retreat on Friday, with the current EUR/USD quote at 1.0870.
The primary focus the previous day was on the final US GDP report for the first quarter of 2023, which surpassed expectations. The US economy expanded by 2.0% from January to March, exceeding the previous growth estimate of 1.3% and the projected increase of 1.4%.
Components of the report revealed that increased exports, consumer spending, municipal and government expenditures, and business investments were the main drivers of economic growth. Consumer spending, which contributes to approximately two-thirds of the economy, grew by 4.2% in the first quarter, surpassing the initial estimate of 3.8%.
This indicates that the economy continued to grow due to consumer activity, although recent signals suggest a slowdown in such activity recently.
Fresh employment market statistics confirmed the strength of the labor sector and added to the reasons for potential interest rate hikes by the Federal Reserve. The number of initial jobless claims for the week decreased to 239,000 from the previous 265,000.
Today is expected to be an eventful day. The Eurozone will release preliminary inflation statistics for June, as well as May data on the labor market. The US will publish personal income and expenditure parameters for Americans in May, along with the final value of the Consumer Sentiment Index from the University of Michigan for June.