We have updated our privacy policy and terms & conditions. Find out more here.
14
 

Forex - Dollar dips as U.S. GDP growth rate disappoints

By Investing.comForexApr 26, 2013 06:37PM GMT Add a Comment
 
AA
+
-
Investing.com - The U.S. dollar traded largely lower against most major currencies on Friday after U.S. economic growth figures for the first quarter came in less than expected and stoked fears the U.S. economy may be hitting a soft patch.

Forex - Dollar dips as U.S. GDP growth rate disappoints
In U.S. trading on Friday, EUR/USD was up 0.14% at 1.3030.

In the U.S. earlier, the Bureau of Economic Analysis revealed in a preliminary report that the U.S. gross domestic product rose 2.5% in the first quarter, missing expectations for a 3.0% increase though an improvement from a 0.4% rise in the previous quarter.

The news weakened the dollar by fueling sentiments that the Federal Reserve's monetary stimulus programs will stay in place for longer than expected.

Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the greenback to spur recovery.

Elsewhere, the Thomson Reuters/University of Michigan's consumer sentiment index rose to 76.4 in April, from a reading of 72.3 the previous month, beating expectations for an increase to 73.2.

The euro, meanwhile, continued to come under pressure after U.S. investment bank Goldman Sachs said it expected the European Central Bank to trim benchmark interest rates 25 basis points at its monetary policy meeting next Thursday.

The investment bank also cut its 2013 eurozone growth forecast to -0.7% from a previous forecast of -0.5%.

Slumping European industrial output reports, soft service-sector data and eroding business confidence data have many market participants speculating the ECB will move to loosen policy to kick-start recovery.

The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.34% at 1.5486.

On Thursday, the Office for National Statistics reported that the U.K. gross domestic product expanded 0.3% in the three months to March, beating expectations for a 0.1% gain and avoiding a triple dip recession.

The U.K. economy expanded 0.6% in the first quarter from a year earlier, better than expectations for a 0.3% increase.

The dollar was down against the yen, with USD/JPY down 1.08% at 98.18, and down against the Swiss franc, with USD/CHF trading down 0.23% at 0.9428.

The yen saw demand after the Bank of Japan left interest rates unchanged and made no mention of expanding stimulus programs.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.35% at 1.0165, AUD/USD down 0.12% at 1.0278 and NZD/USD trading down 0.23% at 0.8480.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% at 82.55.









Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Dollar mixed vs. rivals, U.S. jobless claims on tap
By 
Investing.com
 - Oct 23, 2014
Forex - Euro moves higher after PMI reports
By 
Investing.com
 - Oct 23, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

NZD/USD
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg