The dollar strengthened against the pound and the yen. Earlier the US dollar was knocked out by the first quarter GDP negative release. The index came out at the level of 0.2% instead of the expected 1%. The personal consumption expenditures main index amounted to 0.9%.
This report is negative as the economic growth slowdown is obvious. The dollar revaluation had a negative impact on the US economy. The US Federal Reserve announced its monetary policy meeting results. The FED did not give the market a signal about the first interest rate increase that pointed out to the personal consumption decrease and the exports weakness. The Fed called a low inflation a temporary phenomenon as well as the low GDP. Against this background, the US dollar was under pressure.
We can expect the Old World moderately positive inflation data for April amid the euro area M-3 monetary aggregate growth as well as the Germany CPI increase. By the end of the day the pair euro/dollar had increased.
Great Britain did not publish important statistics. Therefore, dynamic was fully caused by the technical factors and the previously formed sentiments. As a result the pound has decreased.
The Bank of Japan monetary policy decision did not impress the market as the regulator has kept everything unchanged. The pair dollar/yen grew at the end of the trades.