EURUSD

The 0.5% contraction of the US economy in the first quarter, exceeding expectations, has put pressure on the dollar and supported the EURUSD pair. The pair is holding above the 1.16986 pivot level along with the global risk appetite brought by the ceasefire agreement and this weak data. Although the better-than-expected unemployment claims data has limited the dollar's losses, the overall trend is towards a weak dollar. Markets are now focused on the Core PCE data, which will be released tomorrow and is critical for the Fed's interest rate path. If the data comes in line with expectations or lower, it could strengthen expectations for a Fed rate cut and push the pair towards the 1.17918 resistance.