On Thursday the euro dipped against the greenback as appetite for risk assets grew, pushing global stocks and the the dollar higher, while market participants waited for revised U.S. GDP data for the second quarter later in the day.
EUR/USD lost 0.55% to 1.1252, following steep losses on Wednesday.
Investors will now await the U.S. Commerce Department's second estimate on second quarter growth figures at 8:30 am ET on Thursday. Analysts expect the economy to have expanded 3.2% in the three months ended June 30, higher from a preliminary estimate of 2.3%, as an improvement in consumer spending and housing offset the drag from the energy sector.
The U.S. will also issue a weekly report on initial jobless claims due at 8:30 a.m.
Eastern. The consensus of forecasts calls for a decline to 270,000
claims.
Data on pending home sales for July is also anticipated amid expectations for an expansion of 1.0% after falling 1.8% a month earlier.
Separately, investors will look ahead to the Federal Reserve's annual meeting of central bankers, analysts and economists in Jackson Hole, Wyoming, due to begin later today.
Fed Chairwoman Janet Yellen is not attending, but Fed Governor Stanley Fischer will take part in a panel discussion about U.S. inflation developments on Saturday.
Kansas City Fed President Esther George said the market turmoil “complicates” any decision to raise rates, but she repeated her long-held call for a rate hike.
The euro was put under pressure when yesterday the European Central Bank official warned that the bank is ready to expand its economic stimulus program if necessary, as the risk that the ECB will miss its medium-term inflation target has risen due to lower commodity prices and signs of economic weakness. Inflation in the euro region climbed just 0.2% in July, far short of the ECB’s target of close to but just below 2%.
