The US Dollar is holding its gains against the majority of its peers despite the release of data which showed that the US economy grew at a slower pace than previously expected in the first quarter of 2013.
According to the Commerce Departments revised figures, Gross Domestic Product expanded at 1.8% from January to March, down from a previous estimate of growth of 2.4%. Consumer spending which accounts for 70% of the US economy was revised down to a 2.6% gain compared to the previous estimate of 3.4%.
The market was little moved as the data failed to curb expectations that the economy will show signs of sustained recovery, the prerequisite needed for the Federal Reserve to curb its monetary easing programme. Recent data showing improvements to the US jobs and housing sector was being used as the main indicator for the nation’s economic health and economists are remaining optimistic of a strong improvement in the second quarter.
“We just got off to a slower start than expected,” said Maury Harris, the New York-based chief economist for UBS Securities LLC, who projected a 2.1% advance in GDP. “The second half will be better,” he said, because banks are making it easier to borrow.
The data also shows that the economy is coping well with the $85 billion worth of fiscal tightening being imposed upon federal spending and the 2% hike on tax payers.
The next big moved for the US Dollar comes on Thursday with the release of the latest jobless claims data for the week ending June 22nd.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6504
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7671
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0733
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.4712
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0471
(Correct as of 14:25 pm GMT)
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