Euro Stabilizes Amid U.S. Economic Concerns and ECB Anticipation

The euro held near six-week highs against the dollar as anticipation grew over an expected European Central Bank rate cut. Meanwhile, the U.S. services sector showed signs of contraction, fueling expectations for more Federal Reserve cuts. Economic uncertainties persist amid ongoing U.S. trade negotiations.

The euro maintained its stability near a six-week high against the dollar on Wednesday. This comes ahead of an anticipated interest rate cut by the European Central Bank (ECB) on Thursday. Simultaneously, the U.S. currency showed a modest recovery after experiencing a dip following reports of slowing growth and high inflation concerns.

In the United States, recent data revealed a contraction in the services sector for the first time in nearly a year, alongside signs of an easing labor market. This situation stimulated a rally in Treasuries and increased the likelihood of further rate cuts by the Federal Reserve this year.

Economic analysts are closely observing currency markets, as they anticipate the ECB's rate decision and the forthcoming U.S. jobs report. Movements in major currencies, such as the slight rise of the U.S. dollar against the yen and Swiss franc, reflect the market's cautious stance amidst these developments.

(With inputs from agencies.)