The dollar fell against the pound yesterday after GDP figures came out. The American economy shrank faster than forecasts had predicted, at 5% in the first quarter of the year, marking the biggest quarterly decline in the last decade. With some economists believing the next quarter will show the biggest decline since records began in 1947, there may still be more to go before signs of recovery begin to show.
Corporate profits declined by 14% – a poor figure but still better than forecast. Durable goods orders also shrank, particularly in the transport sector.
Later today, we will see further data releases, including personal income and spending, both of which are forecast to have dropped.
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