The U.S. dollar is stable against the euro in trading on Wednesday, strengthening against the pound and the yen.
The ICE-calculated index showing the dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) is adding 0.02% in trading, while the broader WSJ Dollar Index is losing 0.04%.
The euro/dollar pair is trading at $1.0899 as of 8:00 a.m., up from $1.0888 at market close Tuesday.
The pound is down to $1.2319 from $1.2329 the day before. The dollar fell to 130.44 yen against 130.17 yen in previous trading.
This week traders will focus on preliminary data on US GDP for the fourth quarter to be published by the US Department of Commerce on January 26. The consensus-forecast of experts quoted by Trading Economics suggests that the American economy growth slowed down to 2.6% in October-December from 3.2% in the third quarter.
The data published the day before showed a continuing weakening of business activity in the states.
The composite Purchasing Managers Index (PMI) in the U.S., calculated by S&P Global, rose to 46.6 points in January from 45 points a month earlier. A reading below the 50-point mark indicates a contraction in business activity. The U.S. PMI has remained below that level for seven months in a row.
Business activity in January continued to fall in both the U.S. manufacturing and service sectors, preliminary data from S&P Global showed.
Experts expect the weakening economic recovery to prompt the Federal Reserve (Fed) to slow the pace of base interest rate hikes.
